Ford Motor Co., the firt of the Detroit 3 to submit its plan to qualify for federal aid, declared that they don’t expect to make money until at least 2011.
What happends before 2011? Well,according to a news release, Ford expects global and North American auto businesses to reach break-even or be profitable on a pretax basis. In May, Ford abandoned a previous pledge to post a profit in 2009. The automaker has lost money every year since 2005.
Ford also said it is asking Congress for access to as much as $9 billion in federal loans. The company stressed that management hopes to complete its turnaround without accessing the loans.
“For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions as we drive transformational change in our company,” Ford CEO Alan Mulally said in the release.
Mulally, Ford’s CEO, said he would work for a salary of $1 a year if Ford draws money from a potential federal loan pool. Ford also said today that it would sell its five jets.
f Mulally would work for a total compensation package of $700,000 he would save us $21,000,000 right there… and I don’t think there’s an auto executive out there worth $700,000