With the appointment of Alan Mulally as CEO of Ford last week, Ford’s board is scheduled to consider an accelerated cost-cutting plan this week, according to the Associated Press.
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A board meeting this Thursday is due to consider a plan for deeper cuts at the company, drawn up under President of the Americas, Mark Fields, according to an article published in the Northwest Indiana Times.
Mulally has overseen the halving of Boeing’s workforce over the last five years – a move which restored the company’s competitiveness, particularly compared to its main competitor, Airbus.
Ford’s restructuring plan, dubbed the ‘Way Forward’ was unveiled in January this year and called for the closure of 14 plants by 2012 and a 30,000 unit reduction in the workforce.
Around 12,000 workers are expected to leave by the end of the year as a result of buyouts and early retirement packages, as well as through attrition.
Mulally’s initial focus is likely to be on cost-cutting and workforce capacity reductions in the US. In terms of new product and the possible sale of assets such as Jaguar and Aston Martin, the Detroit press is generally agreed that it will take Mulally more time to get up to speed to have any major influence there.
