Doubling Down at Dearborn

Mulally is betting the house:

Ford said its restructuring plan would likely cost $11.18 billion, with more than half of the expenses devoted to programs for laid-off workers.
In a filing with the Securities and Exchange Commission on Wednesday, the No.2 U.S. automaker estimated that it would spend $5.96 billion on a jobs bank and other “personnel-reduction programs,” $2.74 billion to scale back its pensions, $2.2 billion for fixed asset impairment charges and $281 million to idle plants.
The company also disclosed that it had pledged all its buildings, trademarks, intellectual property, shares in the main company, and shares in Volvo, Jaguar, Aston Martin, Ford Motor Credit and other operations as collateral for a $23.4 billion line of credit to fund its restructuring plan and cover losses expected until 2009.

Posted by on March 1st, 2007 at 1:17 pm


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