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Ford Motor Company | 2008 Annual Report 5
As part of our ONE Ford plan we also secured credit in advance of the financial
market meltdown. As a result of all of these actions and based on our current planning
assumptions, we have sufficient liquidity to make it through this global downturn while
maintaining our product plans, without the need for government bridge loans. However,
as we told Congress in our business plan submission in December 2008, in this
environment a number of scenarios could put severe pressure on our Automotive liquidity,
causing us to require such a loan – including most importantly a significantly deeper
economic downturn, or a significant industry event such as the uncontrolled bankruptcy
of a major competitor or major suppliers that caused a major disruption to our supply
base or dealers.
We continue to take the decisive actions necessary to lower production to match
lower worldwide demand and reduce costs. We expect this will contribute to significantly
reduced negative Automotive operating-related cash flow in 2009 as compared with
2008, and position Ford for growth when the economy rebounds. Based on our current
planning assumptions, we believe we are on track for total Company and North American
Automotive pre-tax results and Automotive operating-related cash flow to be at or above
breakeven in 2011, excluding special items. Our ultimate goal remains unchanged:
to create a viable Ford Motor Company and a lean global enterprise delivering profitable
growth for all.
Looking ahead, we anticipate very weak global industry sales volumes during
2009, with a full-year decline in the range of about 15% from 2008 levels. Significant
government policy stimulus is being implemented in most markets and is expected
to improve the environment for sales later this year. Financial markets remain under
significant stress, however, and further government and central bank actions are
needed to provide liquidity and stabilize banks.
For Ford, the year ahead will be marked by an unprecedented number of new
product introductions. Consistent with our ONE Ford plan, we are introducing more
products that customers want and value.
Unsurpassed Quality Built In
Ford, Lincoln and Mercury vehicles continue
their impressive quality gains, collectively
improving for the fourth straight year and
moving into a virtual tie with Honda and
Toyota for the 2008 model year, according
to the latest U.S. Global Quality Research
System (GQRS) study.
Ford’s commitment to world-class quality
extends beyond Things Gone Wrong
(TGWs). Ford also designs into its vehicles
a number of customer-driven product
features, such as fuel economy, superior
craftsmanship, and quiet interiors. These
features represent the “things gone right”
that are also critical to an overall satisfying
ownership experience.