Ford comes out fighting

Of the 'Big Three' American car makers, GM is currently feeling the credit crunch most - with bankruptcy a real possibility unless the US Government intervenes with emergency cash. Job losses and extended factory closures seem the only way to curb the decline.

However, Ford is taking a different approach. Chief Executive Officer Alan Mulally told Detroit News that Ford is planning a slew of new models to drive it out of the crisis by directing new customers into its showrooms.

With America slowly getting used to the idea of driving smaller, more efficient, more 'European' cars, Ford plans to invest heavily in the development of such models for the US. Mulally said: “We're only going to be in business if we create products that people really do want and value.”

However, Ford does plan to cut back on advertising spending, reduce its wage bill by around ten percent and evaluate operating costs at each of its factories - all-in-all saving around $8-9bn ($5-5.5bn). The maker is even considering selling its stake in Mazda.

This will free up the necessary resources to develop cars that will see Ford through the crisis, rather than simply re-developing versions of existing cars and scrapping planned models altogether. Ford has, however, shelved an as-yet-unannounced early-development stage European crossover vehicle.

The plan does not take into account any US Government funding - despite Ford rallying congress for emergency cash along with GM and Chrysler - so it could yet change if the funds are forthcoming. Mulally said: “Whoever is going to invest or loan us money wants to know we're taking the actions to create a viable company going forward". Whatever happens, Ford's positivity shows there's hope for the global car industry yet.

Mark Nichol