Ford Will Speed Green-Car Launches

CEOs of Ford, GM Will Accept $1 Salaries in U.S. Bailout; UAW Leaders to Meet to Discuss Labor Pacts

The Big Three auto makers will submit recovery plans to Congress on Tuesday that emphasize cost-cutting, downsizing and renewed emphasis on higher-mileage cars in a bid to win support for a federal bailout.

Ford Motor Co. Chief Executive Alan Mulally plans to tell Congress he is accelerating his company's development of hybrid and electric vehicles and is willing to cut his salary to $1 a year if Ford uses any federal funds.

General Motors Corp. is expected to focus on efforts to lighten the company's heavy debt load and consolidate or sell at least one of its eight automotive brands, most likely Saab, people familiar with the matter said. GM CEO Rick Wagoner also will take a $1 salary, those people said. Chrysler LLC is likely to emphasize its need for cash to stabilize the company and eventually join an alliance with one or more foreign auto makers, a person close to Chrysler said.

Meanwhile, top leaders and consultants for the United Auto Workers union, under pressure to deliver concessions, will meet Wednesday in Detroit to discuss potentially tweaking labor agreements, people familiar with the matter said Monday.

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http://online.wsj.com/article/SB122817144031770385.html?mod=rss_whats_news_us#

Comment:
As in earlier comments discussed in this blog, the big three are struggling not only because of the bad economy but also because they missed the train to focus on highly fuel-efficient cars. Especially because they are focused on powerful cars like the huge pick-ups which a lot of Americans really like. But those trucks are not really competitive like in Europe where the focus is more on cars with alternative energy use. Finally, the big three have to realize it in a hurting way. At least, they are taking drastic measures now in order to get more competitive again and to lower the financial burden.


Oezguer (Oscar).