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Ford Motor Co. will sell its corporate aircraft as part of its
proposal to Congress in hopes of securing $9 billion in emergency loans, the
company told lawmakers Tuesday. Ford became the first of the Big Three automakers to submit plans
for financial recovery in advance of congressional testimony from CEO Alan
Mulally on Thursday and Friday.
The planes proved a major source of embarrassment when Mulally and
his counterparts at Chrysler and General Motors showed up to testify on Capitol
Hill last month in three different private jets.
The recovery plan, submitted to the House Financial Services and
Senate Banking committees, paints an optimistic picture by suggesting the struggling
automaker could return to profitability by 2011 through restructuring, plant
closures and an increased reliance on new, more environmentally friendly
products.
Beyond aggressive restructuring amid depressed demand, Ford said
it would step up design and production of a fully battery-operated electric
vehicle. A van version will be available by 2010, while the company hopes to
produce a sedan version by 2011.
The company also promised to boost fuel efficiency by an average
of 14 percent in the next year alone, increasing to a 36 percent rise in
efficiency by 2015.
The Big Three automakers will release their November sales results
early this afternoon, and though analysts expect total sales to be down
severely from the same period last year, Ford said it expects sales to pick up
over the next three years.
Part of the plan also calls for a quick infusion of cash, which
might include selling the company’s Volvo unit.
Ford said it does not foresee a liquidity crisis in the coming
year, though it warns the collapse of either Chrysler or General Motors could
further depress the economy and lead to a more severe economic downturn.
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