Ford CEO Alan Mulally said that the automaker is ahead of schedule on reducing costs, including plant closures and job cuts.

“I would characterize that we are ahead of schedule on the restructuring,” Mulally said last week during a presentation to analysts. “Our No. 1 priority is to restructure ourselves.”

Ford lost $7 billion in the first nine months of 2006 and has announced it will close 16 U.S. plants by 2012 and cut nearly 45,000 jobs to return its North American automotive operations to profitability.

Mulally’s new target for cost-cutting is to reduce the number of vehicle platforms it uses around the world and increase part sharing. Ford has been operating as six or seven independent regional units, and lags behind its rivals in unifying its product offerings and reducing costs by taking advantage of its global scale.

Mulally’s goal is to unify Ford’s vehicle platforms and drivetrains, and “start putting on the exterior … that’s tailored to the regions around the world.”

## Source: Automotive News ##

Posted in: Ford, Manufacturing, Business, Financial, Employment
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