Courgar will no longer be built

[focalBlur]

as part of the Ford Revitalization plan these cars will no longer be built

Cougar
Escort
Continental
Villager

and these plants are being closed
Vulcan Forge
Avon Lake
Edison, N.J
Ontario truck

DEARBORN, Mich., Jan. 11 – Ford Motor Company [NYSE:F] today announced several restructuring actions as part of its Ford Revitalization Plan, a product-focused program designed to strengthen its position in the marketplace and improve its financial results. These actions will enhance the company’s ability to produce the highest level of quality cars and trucks while reducing the cost structure.
"Our revitalization plan is based on executing the fundamentals of our business to build great products," said Chairman and Chief Executive Officer Bill Ford. "What we are outlining today is a comprehensive plan that builds for the future. It's going to take everyone in the extended Ford family – employees, suppliers and dealers – working together, over time, to make it work."

The actions announced today include:

New products: A product-led revitalization program which will lead to the introduction of 20 new or freshened products in the U.S. annually between now and mid-decade.
Plant capacity: Reduction of North American plant manufacturing operating capacity by about one million units by mid-decade to realign capacity with market conditions.
Hourly workforce: About 12,000 hourly employees in North America are affected by the actions completed in December or to be taken throughout 2002 and beyond. An additional 3,000 hourly employees were affected in 2001. Plans are being made to reassign as many plant employees as possible.
Salaried workforce: Last year's voluntary separation program for salaried employees and other related actions resulted in a 3,500-person workforce reduction in North America. This program will be extended to achieve an additional 1,500-person salaried workforce reduction to reach the goal of 5,000. If necessary to meet this goal, an involuntary separation program will be used.
Global workforce: About 35,000 employees will be or already have been affected by combined actions around the world since January 2001. These include 21,500 in North America -- 15,000 hourly, 5,000 salaried and 1,500 agency employees -- and 13,500 in the rest of the world.
Material costs: A material cost-reduction program has been initiated with North American suppliers which shares design savings, with Ford receiving 65 percent of implemented cost reductions and suppliers receiving 35 percent in the first year. Designs will be developed that will help improve Ford's products and overall quality. This program, along with other material cost reduction efforts, is expected to improve ongoing annual profits before taxes by $3 billion by mid-decade.
Discontinued low-margins models: The Mercury Cougar, Mercury Villager, Lincoln Continental and Ford Escort will be discontinued this year.
Beyond North America: Revitalization plans beyond North American automotive operations include the continued implementation of the European Transformation Strategy, the Premier Automotive Group strategy, the turnaround in South America and a revised direction for Ford Financial.
Divestitures: Ford is pursuing the sale of non-core assets and businesses. Ford’s plans include $1 billion of cash realization from these actions in 2002.
Dividend: The annual common stock and Class B stock dividend will be reduced from 60 cents a share to 40 cents.
These actions and those already taken are expected to improve pre-tax operating results to $7 billion annually, an improvement of $9 billion by the middle of the decade. As part of the restructuring, the company will take an after-tax charge to fourth quarter earnings of $4.1 billion. The charge will cover several items, including asset impairments and personnel costs.

Today's announcement is part of an ongoing series of steps the company has taken over the past few months and will take in the future to restructure its business. Those taken earlier include the consolidation of car and truck product development in North America, a 50 percent dividend reduction, a 7 percent pay reduction to contract labor firms, a voluntary separation program for North American salaried employees, the elimination of bonuses and raises for senior managers, a sharing of health care costs with U.S. salaried employees and retirees, and the elimination of the company match for U.S. salaried employee 401(k) plans.

"Although the actions we're outlining today are difficult, they are necessary steps to lead Ford back to a strong financial and competitive position," said Nick Scheele, president and chief operating officer. "They will help us to address our problems, while at the same time permitting us to keep a sharp focus on delivering great products. Quality and value will be the hallmarks of our cars and trucks."

PLANT ACTIONS

Manufacturing plans over the next several years include: 1) Closing five plants: Edison Assembly, Ontario Truck Plant, St. Louis Assembly, Cleveland Aluminum Casting and Vulcan Forge; 2) No new products have been identified for two plants: Ohio Assembly and Cuautitlan Assembly, 3) Pursuing the sale of Woodhaven Forging Plant, 4) Major downsizing and shift reductions at 11 plants; and 5) Line speed reductions and changes to operating patterns at nine plants.

"In order to remain competitive and profitable, we must make some hard decisions to align capacity with our anticipated sales," said Scheele. "At the same time, the company is continuing its commitment to North American manufacturing operations with investments of about $20 billion over the next five years in new product programs and spending to add flexibility and increase our ability to respond quickly to changes in market demand."

FINANCIAL MILESTONES

In addition, the company today announced the following 2002 financial milestones:

Restructuring Priorities Milestones
Communicate/implement plans Report on progress
Quality (U.S.) Improve J.D. Power Initial Quality Survey
Capacity utilization (North America) Improve by 10 percent
Non-product related cost Reduce by $2 billion
Divest non-core operations $1 billion cash realization

Financial Results Milestones
Pre-tax operating earnings Positive
Capital spending $7 billion
Europe Improve results
South America Improve results

"We are confident we can achieve these goals through the efforts of our dedicated employee team," Bill Ford said. "We know we have immediate challenges to face. It will be difficult, and in some cases, painful to turn things around. But we will turn things around."

Final results of the 2001 milestones will be announced when Ford releases its fourth quarter and full-year 2001 financial results on Jan. 17.

Ford Motor Company is the world's second largest automaker, selling vehicles in 200 markets and with approximately 345,000 employees on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Financial, Hertz and Quality Care

[70Nova]

I,for one won`t miss the "new" Cougar. Just a joke of it`s former self! Put it back on the Mustang platform like the old days,that would catch my interest.

[MercCougarXR7]

Ditto!

With all due respect to the owners of newer Cougars on this board, I do not like them. They're an alright car (mechanically and design), but they are NOT a Cougar!

Cougars are RWD V8 Coupes, not FWD 4 bangers.

Put it back on the Mustang platform, give it the retro look, and I'm sure it'll sell. Heck, the Mustang is doing GREAT! Why wouldn't a car built on the same chassis with similar looks do as well?

[DMC12]

I wish both Ford and GM could realize that closing plants and cancelling models will not help. They need to clean house & wipe out the the board, officers, ceo & presidents, managers and supervisors. Eliminating the overpaid & underworked unions wouldn't help either. Also, whip the dealers into shape, especially the slimy salesmen!

I will miss the Cougar... maybe not the current body style, but in the past it wasn't too bad. If they could get good management & wise, hip designers then they could be #1 And Cougars could be serious contenders like they once were.:smoker2:

[Cougar_chick_99]

In my opinion, I like the newer models better. The older ones are big and look like old people cars. But that's just mine.... I happen to drive a 99, and it's the greatest thing!!

[MercCougarXR7]

LOL - yep, some of the Cougars built certainly did look like geezer mobiles - especially once dealers got ahold of them, put chrome fender trim on, landau roofs, luggage racks, etc.

But, like ANY car - it can and will be geezered out. Except if they can't fit in the car, like the new Cougar .

Don't get me wrong - I DO like the new Cougar, it's a really sharp looking car, more so than alot of what Japan sends over here. I just don't like that it's the car to carry the Cougar name.

BTW - I hope my Cougar don't look like a old man car to you ! Even my Old man Marquis doesn't look like an old man car !