Ford says CEO will work for $1 to get government loans

By The Associated Press

Photo by Associated Press

Ford President and Chief Executive Alan Mulally answers questions following the company's shareholders meeting, in Wilmington, Del. in this 2007 file photo.

ADVERSTISMENT

DETROIT — Ford Motor Co. will tell Congress that it plans to return to a pretax profit or break even in 2011 when Detroit's Big Three automakers' chief executive officers appear before lawmakers this week to request $25 billion in government loans.

Ford CEO Alan Mulally said he'll work for $1 per year if the company has to take any government loan money.

After grilling the CEOs at hearings last month, Congressional leaders demanded plans from the automakers by Tuesday to show that they will survive if they get federal funds. The plan Ford submitted said the company will cancel all management employees' 2009 bonuses and will not pay any merit increases for its North American salaried employees next year.

Mulally said Tuesday that Ford will give much more detail to Congress than it did previously, and the company will emphasize the steps it has taken to cut its labor costs with the United Auto Workers union.

Mulally said Ford will seek $9 billion as its share of the loan money but may not need to use it. The Dearborn-based company has said it has enough cash to make it through next year without assistance.

As part of the plan submitted to Congress, Ford said it does not anticipate a liquidity crisis in 2009, "barring a bankruptcy by one of its domestic competitors or a more severe economic downturn that would further cripple automotive sales." The loan would provide a safeguard against worsening conditions, the company said.

Read tomorrow's Arkansas Democrat-Gazette for full details.

Thank you for coming to the Web site of the Arkansas Democrat-Gazette. We're working to keep you informed with the latest breaking news.