Ford has submitted its business plan to the US Congress to demonstrate its vision to return to profitability, in order to secure a bridge loan from the government.
The US carmakers, Ford, GM and Chrysler have all call for government aid to help see them through hard times. Washington responded by demanding that the big three prove that they can recover their business to reassure the US taxpayer that a state hand-out would not be squandered.
Ford’s rescue mission business plan includes details of ‘accelerated vehicle electrification plan’ for a family of hybrid-elctric, plug-in hybrid and electric vehicles including plans for a fully battery electric vehicle (BEV) as a van for commercial use by 2010 and a BEV sedan by 2011.
Calling for an investment total of $9 billion, Ford forecasts that the fuel economy of its fleet will improve an average of 14 percent for 2009 models, 26 percent for 2012 models and 36 percent for 2015 models – compared with the fuel economy of its 2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 16 billion gallons from 2005 to 2015. Claiming that the loan would act merely as a security net, the manufacture hopes to complete its transformation to profitability again without accessing the loan as long as Congress agrees to make the funds available.
“For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company,” said Ford President and CEO Alan Mulally, who will testify before Congress this week in the hope of finally securing the loan.
