The Ford Motor Company said on Wednesday that its accelerated Way Forward turnaround plan, announced in September, would cost an estimated $11.18 billion. This is a $1.2 billion increase from it previous estimate in January. Most of that amount will be spent on programs to lay off employees.

Ford says it has already accrued $9.98 billion of the reorganization costs in 2006. The automaker is expected to spend $5.96 billion on “worker reduction programs,” $2.74 billion on charges related to scaling back pensions, $2.2 billion in fixed-asset impairment charges and $281 million associated to plant idlings.

Ford will accrue the additional $1.2 billion, primarily related to salaried job cuts, in the first quarter of 2007.

## Source: Reuters ##

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