Buyouts key to Ford goals

Ford Motor Co. missed its own targets for operating cost reductions in the fourth quarter of last year, largely because the automaker never expected contract negotiations with the United Auto Workers to drag on that long.

However, the company says it met its full-year cost-reduction goals, though it still faces real challenges in meeting its broader goal of reducing operating expenses by $5 billion by the end of this year.

Ford succeeded in slashing operating costs by $2.1 billion through last year, but missed its fourth-quarter cost-reduction goal by about $200 million, according to an internal company document obtained by The Detroit News. Titled "Report Card: January 2008," it outlines the automaker's progress on key elements of its North American turnaround plan.

That was about equal to the amount Ford paid out in signing bonuses to UAW members as part of its new labor agreement with...

Last Update on : February 12, 2008   

• Back    • View Whole Article