My blog about Ford Motor Corporation. News, products, engines, concepts and showcars, opinion, projects, owner experiences. Covers all corporate Ford brands: Ford, Lincoln, Mercury, Volvo. Special emphasis on performance cars and international operations.
Note: Mazda is in it's own section, complete with it's own blogs and RSS feeds.
Jalopnik.com has purloined uncovered http://jalopnik.com/5118591/the-ford-taurus-sho-is-back (<right click> and <open in new tab>) images of a Ford prototype that indicates a new Taurus SHO is coming to market. Look for it in the calender 2010 timeframe!
As a former owner of both Generation 1 and 3 SHOs, we have just a few (!) opinions as to the viability of a new SHO. We've also taken our well-received SHO vs SHO comparison article (comparing our original 89 SHO to our 97 SHO with owner impressions of both and specifications of all three generations) and created a SHO vs SHO vs SHO article guesstimating what the 2010 SHO specs will be and comparing them to the original 3 generations.
The new Ford Taurus SHO will be a large and heavy car: 202+ inches and 4150+ pounds). How viable is this in today's market? Will this be worthy of the name SHO or will it be an unworthy a luxo-barge? Follow the link above for one of our typically long-long-long diatribes and rants.
SHO enthusiasts: follow the "See similar posts" link below for over 40 posts from the past few years on the SHO topic. And explore the DrivingEnthusiast Ford section for more information on the SHO, including Ford's own SHO-powered showcars and the prototype V-8 SHO that disappeared off the face of the earth.
We'll end the night on a ridiculous note... we've been reading about swapping various Focus, Contour and Taurus engines for the last couple of hours. Here's the ultimate swap: a Sherman Tank engine into a Mustang. Courtesy of YouTube, we get to see and hear it running. Yes, it might be possible to have too much engine... but it sounds SO good...!
Now that we've brought up the topic of tank engine swaps, we expect that somebody will swap one into a Focus sooner or later ;-) That'll make that Boss 429 Ford EXP we saw way back in '92 or '83 look like a little kiddie toy.
Of course the greatest Ford V-6 engine ever was the SHO V-6... built and designed by Yamaha for Ford. It's been swapped out of SHO Tauri and into many deserving recipients. One is the Ford Focus below. See the site here: http://www.modifiedfocus.com/shoswap.htm - which unfortunately doesn't have any technical details or results.
Thinking tonight about SVT Contours... and wondering where a clean one might be found... we just remembered this site documenting the results of a turbo installation. How about a 400 HP SVT Contour?
Here's a great swap story we've been following for... just about forever. The owner swapping an SVT Contour V-6 into his Focus came this ->| |<- close to finishing the swap before he had to leave home to go back to school. The engine is in, but the electronics aren't done. The rest of the story will play out when he returns home next summer... but in the meantime see the Focus Fanatics forum story here: (suggest <right click> and <open in new tab>) http://www.focusfanatics.com/forum/showthread.php?t=121550&;page=1
As Ford followers know, the current Focus in North America is simply a re-skinned version of the last Focus and is no longer related to the far superior European Focus. The North American Focus has no enthusiast value at all, although due to the gas crisis it has sold above expectations. The last North American Focus with any enthusiast interest at all was the SVT Focus, and that became obsolete against the competition so quickly that it is all but forgotten these days.
The European Focus, however, has always offered at least two enthusiast variants and has recently taken a quantum jump forward with the new RS model. With a patented "RevoKnuckle" front suspension to all but eliminate torque steer by optimizing geometry coupled with a Quafe limited slip diff feeding 235/35-19s, Ford continues it's emphasis on handling above all else. 305 HP PS and 440Nm peak torque from a DOHC 5-cylinder, serious Recaro seats, and big Brembo brakes make this a very complete car. As does the top speed of over 160 MPH.
Will we ever see the RS in the United States? That's the big question. Putting aside the financial crisis (from which we're very lucky to be finally getting the basic European Focus in 2011) it's a possibility that we'll finally see ST and RS versions now given the recent news that Ford has merged all of it's performance divisions worldwide. As you know, SVT as it was originally formed has been dead for several years. And that's a good thing, as the engineering quality of the US-designed SVT products got progressively worse right thru the Ford GT debacle ( http://www.drivingenthusiast.net/sec-blog/categories/fordFordGt/2005/03/31.html#a458 ).
The new head of worldwide Ford performance operations, Jost Capito, is a European and is moving to Detroit as of January 2009. You'll note that Mr. Capito had a major role in both WRC and the development of the RS. Lets hope he focuses (no pun intended) on true performance vehicles like these, instead of ridiculous NASCAR poseurs and off-road trucks. So while SVT will continue as a branding tool (aka a logo on wheel center caps), the emphasis will be on global ("One Ford" as Mr. Mullaly says it) performance cars and that means more like the Focus RS. Keep your fingers crossed that we'll see it built here and sold here.
Ford Press Release follows:
FORD ANNOUNCES SENIOR MANAGEMENT CHANGES TO STRENGTHEN GLOBAL PERFORMANCE VEHICLES STRATEGY
Jost Capito is appointed Director, Global Performance Vehicles and Motorsport Business Development
Jost will be based in Dearborn, USA, and will report to Hermann Salenbauch, Director Advanced Product Creation and Performance Vehicles, and Brian Wolfe , Director North America Motor Sports
Ford's North American Special Vehicle Team (SVT) led by Jamal Hameedi, Chief Nameplate Engineer, and Kerry Baldori, Chief Functional Engineer will report to Capito in his new role
Ford of Europe's performance vehicle operations will be managed by Dirk Densing, who will continue to be based in Cologne, Germany, and report to Capito and, depending on vehicle, the relevant Vehicle Line Director based in Cologne
DEARBORN, Mich., Dec. 4 – Ford Motor Company is strengthening its commitment to performance vehicles by appointing Jost Capito to the newly-created position of Director, Global Performance Vehicles and Motorsport Business Development. Jost will take up his new position in January 2009.
In his new role, Capito will be responsible for the global development of Ford's performance vehicles business. The North American SVT and European TeamRS performance vehicle organizations will come together, both reporting to Capito, to focus on the development of global performance vehicles, and the implementation of consistent vehicle attributes and DNA in future Ford performance models.
Additionally, Capito will assume responsibility for global motorsport business strategy and aligning Ford's global motorsport plans and programs. He will lead the development of motorsport opportunities for Ford's future global car products around the world, advising and working closely with the company's regional Motorsports directors.
Jost Capito joined Ford of Europe in October 2001 as director of Special Vehicle Engineering. Between 2003 and 2007, he assumed responsibility for Ford of Europe's motorsport and performance vehicle programs, leading the company's successful World Rally Championship efforts and winning Manufacturers' Championship titles for the BP Ford Abu Dhabi World Rally team in 2006 and 2007. In November 2007, Capito was appointed Vehicle Line Director for Ford of Europe's Performance Vehicles, and since then has led the development of the eagerly-awaited new Focus RS road car which will be launched in Europe in the first quarter of 2009. He was also responsible for European Fiesta ST and Focus ST performance models.
Jost Capito is 50 years old, and currently lives with his family in the UK. In his new position, he will relocate to Ford's World Headquarters in Dearborn, Michigan.
"Performance vehicles and motorsport have been important to Ford since the company was founded more than a century ago. With Jost's immense experience in both areas, performance vehicles and motorsport, we expect that tradition to continue and be strengthened within our One Ford strategy," said Hermann Salenbauch, Director of Advanced Product Creation and Performance Vehicles, Ford Motor Company.
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BRENTWOOD, Essex, 15 December, 2008 Ford’s fastest-ever European production car, the 2009 Focus RS, will be priced from £24,995 when it goes on sale in the UK in March.
The new Focus RS is the first Ford to wear the famous Rallye Sport badge since the first-generation Focus RS was launched seven years ago, and the 22nd since 1970. RS denotes a distinctive blend of high performance, road-holding, refinement, safety and value for money, and reflects a proud tradition of successful motor sports involvement that continues to the present day.
Under the bonnet of the Ford Focus RS is a turbocharged 2.5-litre, five-cylinder Duratec petrol engine, with a confirmed 305PS and 440Nm peak torque. Features include unique camshafts and a revised cylinder head and gasket, intake and manifold system.
Front-wheel-driven through a six-speed transmission, the Focus RS accelerates from 0-62mph in under six seconds and has a targeted top speed of over 160mph.
A class-leading balance of traction, sports handling and performance is achieved through the combination of a Quaife Automatic Torque Biasing limited-slip differential and innovative RevoKnuckle front-suspension system.
These features are complemented by a wider track, enhanced drive-shafts and rear anti-roll bar, revised springs and dampers and retuned steering, while a specially developed version of Ford’s Electronic Stability Programme (ESP) with Traction Assist (TA) provides added assurance. Uprated disc brakes – 336mm ventilated front and 300mm rear – combine with an anti-lock braking system (ABS), electronic brake-force distribution (EBD) and Emergency Brake Assist (EBA) to supply a reassuringly high degree of stopping power.
Taking its place as the top-of-the-range Focus, the RS will be immediately distinguishable on the road, with its unique bonnet, front bumper and side skirts. Also unique to the model are its 19-inch alloy wheels, shod with 235/35 tyres.
The rear twin-bladed spoiler - the continuation of an RS tradition – and the power/heated door mirrors are also distinctive, with their high-gloss black finish.
Xenon headlights with automatic levelling and jet-wash are provided, with LED lights at the rear. Dual chrome tailpipes add a further sporting dash.
A Quickclear heated windscreen is fitted, and privacy glass for the rear. A Ford Easy Fill fuelling system removes any risk of costly mis-fuelling errors at the pump.
The driver and front passenger benefit from unique Recaro sports seats, with side bolsters trimmed to match the colour of the car – green for Ultimate Green models, blue for those finished in Performance Blue or Frozen White. Rear passengers are comfortably accommodated in a sculpted Recaro-style seat.
A manual air-conditioning system is provided, and in-car entertainment in the form of a Sony radio and six-disc CD player with DAB. A Ford Power button allows for keyless engine ignition, and a Thatcham Category 1 alarm is standard.
A £750 Luxury Pack includes the options of Dual-Zone Electronic Automatic Temperature Control (DEATC) air-conditioning; automatic headlights; rain-sensor wipers; auto-dim rear-view mirror; rear parking-distance sensors; tyre deflation-detection; and a Ford Key-Free system. The £1,500 version of the Luxury Pack adds in a Touchscreen DVD Navigation System, with seven-inch touch-screen.
Other optional extras include partially leather-trimmed seats at £500 and, for £200, Bluetooth® hands-free phone connectivity and USB port. Specifying a metallic version of the Performance Blue paintwork costs £395, while a Tri-Coat Metallic Ultimate Green finish carries a £695 price tag.
The standard price of the flagship Focus RS compares with £20,408 for the ST3, the existing top-of-the-range Focus.
FORD MOTOR COMPANY SUBMITS BUSINESS PLAN TO CONGRESS; PROFIT TARGET, ELECTRIC CAR STRATEGY AMONG NEW DETAILS
Based on current business planning assumptions, Ford expects both its overall and its North American Automotive business pre-tax results to be breakeven or profitable in 2011
Ford provided initial details of an accelerated vehicle electrification plan for a family of hybrids, plug-in hybrids and battery electric vehicles. The plan includes a Ford full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011
Ford’s plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years
Ford said it will sell its corporate aircraft as part of its overall cash improvement plan
DEARBORN, Mich., Dec. 2. 2008 – Ford Motor Company this morning submitted to Congress its comprehensive business plan, which details the company’s plan to return to profitability and outlines a request for potential access to a temporary bridge loan in case the current economic crisis worsens or there is a bankruptcy of a major competitor.
In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles – including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.
Ford is asking for access to up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available.
Despite the serious global economic downturn, 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 and create additional cash challenges.
“For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company,” said Ford President and CEO Alan Mulally, who will testify before Congress this week.
In the plan submitted to Congress, Ford reiterated that its One Ford transformation plan remains fully in place, anchored by four key priorities:
Aggressively restructure to operate profitably at the current demand and changing model mix;
Accelerate development of new products our customers want and value;
Finance our plan and improve our balance sheet; and
Work together effectively as one team, leveraging our global assets.
“Ford is committed to building a sustainable future for the benefit of all Americans,” Mulally said. “We believe Ford is on the right path to achieve this vision.
“We appreciate the valid concerns raised by Congress about the future viability of the industry,” he added. “We hope that our submission today helps instill confidence in Ford’s commitment to change, including our accountability and shared sacrifice during this difficult economic period.”
Ford’s submission to Congress included new details about Ford’s future plans and forecasts, including:
Based on current business planning assumptions – including U.S. industry sales for 2009, 2010 and 2011 of 12.5 million units, 14.5 million units and 15.5 million units, respectively – Ford expects both its overall and its North American automotive business pre-tax results to be breakeven or profitable in 2011, excluding any special items.
As part of a continuing focus on building the Ford brand, the company said it is exploring strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker. The strategic review is in line with a broad range of actions Ford is taking to strengthen its balance sheet and ensure it has the resources to fund its plan. Since 2007, Ford has sold Aston Martin, Jaguar, Land Rover and the majority of its stake in Mazda.
Ford’s plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years.
Half of the Ford, Lincoln and Mercury light-duty nameplates by 2010 will qualify as “Advanced Technology Vehicles” under the U.S. Energy Independence and Security Act – increasing to 75 percent in 2011 and more than 90 percent in 2014. Ford said it has included these projects in its application to the Department of Energy for loans under that Act and hopes to receive $5 billion in direct loans by 2011 to support Ford’s investment in advanced technologies and products.
From its largest light duty trucks to its smallest cars, Ford will improve the fuel economy of its fleet an average of 14 percent for 2009 models, 26 percent for 2012 models and 36 percent for 2015 models – compared with the fuel economy of its 2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 16 billion gallons from 2005 to 2015.
Next month at the North American International Auto Show in Detroit, Ford will discuss in detail the company’s accelerated vehicle electrification plan, which includes bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles. The work will include partnering with battery and powertrain systems suppliers to deliver a full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011. Ford said it will develop these vehicles in a manner that enables it to reduce costs and ultimately make BEVs more affordable for consumers.
The 2007 UAW-Ford negotiations resulted in significant progress being made in reducing the company’s total labor cost. Given the present economic crisis and its impact upon the automotive industry, however, Ford is presently engaged in discussions with the UAW with the objective to further reduce its cost structure and eliminate the remaining labor cost gap that exists between Ford and the transplants.
As previously was announced, Ford plans two additional plant closures this quarter and four additional plant closures between 2009 and 2011. The company also has announced its intent to close or sell what will be four remaining ACH plants. The company said it will continue to aggressively match manufacturing capacity to real demand.
Ford will continue to work to reduce its dealer and supplier base to increase efficiency and promote mutual profitability. By year end, Ford estimates it will have 3,790 U.S. dealers, a reduction of 606 dealers overall – or 14 percent from year-end 2005 – including a reduction of 16 percent in large markets. In addition, Ford has been able to reduce the number of production suppliers eligible for major sourcing from 3,400 in 2004 to approximately 1,600 today, a reduction of 53 percent. Ford eventually plans to further reduce the number of suppliers eligible for major sourcing to 750.
Ford also confirmed today that it has decided to sell its five corporate aircraft. In addition, Ford CEO Mulally announced that, should Ford need to access funds from a potential government bridge loan, he would work for a salary of $1 a year – as a sign of his confidence in the company’s transformation plan and future.
Ford also reiterated that it is canceling all bonuses to be paid in 2009 for all management employees worldwide and foregoing bonuses for all employees in North America. The company also will not pay merit increases for North America salaried employees in 2009.
Ford said it is moving fully ahead with plans it announced this summer to leverage the company’s global product strengths and bring more smaller, fuel-efficient vehicles to the U.S. The plan includes delivering best-in-class or among the best fuel economy with every new vehicle introduced. Ford also is introducing industry-leading, fuel-saving EcoBoost engines and doubling the number and volume of hybrid vehicles.
This product acceleration will result in a balanced product portfolio with a complete family of small, medium and large cars, utilities and trucks. Ford said it is increasing its investment in cars and crossovers from approximately 60 percent in 2007 to 80 percent of its total product investment in 2010.
“Ford has a comprehensive transformation plan that will ensure our future viability – as evidenced by our profitability in the first quarter of 2008,” Mulally said. “While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth.”
To read Ford’s submission to the U.S. Congress and for more information about Ford’s plan, please visit www.thefordstory.com. # # #
Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, United States, manufactures or distributes automobiles in 200 markets across six continents. With about 224,000 employees and about 90 plants worldwide, the company’s core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.
Safe Harbor/Risk Factors
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
Continued decline in market share;
Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors;
A further increase in or acceleration of the market shift away from sales of trucks, SUVs, or other more profitable vehicles, particularly in the United States;
Further significant decline in industry sales, resulting from slowing economic growth, geo-political events, or other factors;
Lower-than-anticipated market acceptance of new or existing products;
Further increases in the price for, or reduced availability of, fuel;
Currency or commodity price fluctuations;
Adverse effects from the bankruptcy or insolvency of, change in ownership or control of, or alliances entered into by a major competitor;
Economic distress of suppliers of the type that has in the past and may in the future require us to provide financial support or take other measures to ensure supplies of components or materials;
Labor or other constraints on our ability to restructure our business;
Work stoppages at Ford or supplier facilities or other interruptions of supplies;
Single-source supply of components or materials;
Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition;
Inability to implement the Retiree Health Care Settlement Agreement to fund and discharge UAW hourly retiree health care obligations;
Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost trends);
The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs;
Increased safety, emissions, fuel economy, or other regulation resulting in higher costs, cash expenditures, and/or sales restrictions;
Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;
A change in our requirements for parts or materials where we have entered into long-term supply arrangements that commit us to purchase minimum or fixed quantities of certain parts or materials, or to pay a minimum amount to the seller (“take-or-pay” contracts);
Adverse effects on our results from a decrease in or cessation of government incentives;
Adverse effects on our operations resulting from certain geo-political or other events;
Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business, or refinance our debt;
Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow because we are able to incur substantially more debt, including additional secured debt);
Failure of financial institutions to fulfill commitments under committed credit facilities;
Inability of Ford Credit to obtain an industrial bank charter or similar banking status;
Inability of Ford Credit to access debt, securitization or derivative markets around the world at competitive rates or in sufficient amounts due to additional credit rating downgrades, market volatility, market disruption, or otherwise;
A prolonged disruption of the debt and securitization markets;
Higher-than-expected credit losses;
Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;
Changes in interest rates;
Collection and servicing problems related to finance receivables and net investment in operating leases;
Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles;
New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions; and
Inability to implement our plans to further reduce structural costs and increase liquidity.
We cannot be certain that any expectation, forecast or assumption made by management in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. For additional discussion of these risks, see “Item 1A. Risk Factors” in our 2007 Form 10-K Report and our third quarter 2008 Form 10-Q Report.
President and Chief Executive Officer, Ford Motor Company
Senate Banking Committee
November 18, 2008
Thank you Mr. Chairman, Senator Shelby and members of the Committee. I appreciate the opportunity to be here with you today representing Ford Motor Company as you consider issues that are absolutely critical to this venerable American company and to the nation.
In my judgment, there are two fundamental questions on the table today:
Is there a competitive and sustainable future for our domestic automotive industry?
Is the provision of government assistance to help bridge the domestic auto industry through these difficult economic times more favorable to our nation than the costs of inaction?
I respectfully submit that the answer to these questions is a resounding yes. The domestic industry is increasingly more competitive and sustainable and is in many respects on par with our foreign competitors. A decision to make government assistance available makes much more sense than taking the tremendous risks to our already-fragile economy that come with inaction.
Ford’s Competitive Transformation
As you are well aware, we face serious problems in our economy, and the auto industry has been among the most heavily affected by the turmoil in the financial markets and the impact that turmoil has had on spending for consumer products. As public attention has shifted from the credit and financial institution crisis to larger economic issues, we in the auto industry find ourselves at the center of a national debate on the future of our industry. Much of the commentary I’ve read in the last few weeks is highly critical of our industry, and a common refrain is that our companies "need a new business model."
I completely agree. What many of the commentators and critics fail to recognize, however, is that we at Ford are on our way to realizing a complete transformation of our company – building a new Ford that has a very bright future.
The reason I came to Ford two years ago after 37 years in the aerospace industry working for Boeing was because of my confidence that the incredible talent and resources of the Ford Motor Company could and should be redirected into an effort to transform Ford so it can be one of the strongest competitors in today’s global automotive market. Inspired by the compelling vision outlined by our Executive Chairman Bill Ford, Ford had already begun its transformation from a company focused in this country largely on trucks and SUVs. All of our efforts over the last two years have been directed toward speeding up the transformation of Ford to a global profitable business based on the highest quality, sustainable, fuel-efficient, safe, fun-to-drive and best-value world class vehicles.
With that in mind, I’d like to take a few minutes to tell you about the transformation under way at Ford to give you a vision for the future that we are creating today.
Our plan for the past two years has been consistent.
We have been aggressively
restructuring to operate profitably at the current lower demand and changing model mix.
We have been accelerating development of the safe, fuel-efficient, highest-quality new
products that customers want and value.
We have been working to
finance our plan and improve our balance sheet.
And we have been
working together as one team – with our employees, dealers, suppliers and union partners – leveraging our global assets like never before.
Our goal has been and remains to create a viable, highly focused, fully integrated Ford Motor Company – a lean enterprise delivering profitable growth for all over the long term.
Restructuring.
Few companies in the history of our country have restructured more aggressively. I can tell you that in my experience, the union under Ron Gettelfinger is working with us as part of the solution.
In a very short period of time, working together, we have reduced excess capacity, closing 17 plants in North America – including more than one-third of our assembly plants – in the past five years. We have also reduced our workforce by 51,000 employees in the past three years, shrinking our hourly workforce from 83,000 to 44,000 and reducing salaried headcount by around 12,000 from a base of 33,000.
We negotiated a new contract with our UAW partners to begin a path toward competitiveness and offset some of the massive legacy costs that come with doing business in America for more than 100 years. Most significantly, that contract established a trust that funded our retiree health care obligation and removed the liability from Ford’s balance sheet effective 2010. Ford has fully met the funding requirements associated with that agreement, including setting aside an initial $4 billion contribution in January of this year.
Our agreement with the union also established an entry level wage that reduces future costs and will make us more competitive going forward longer-term. And, for the first time ever, it included no base wage increase during the four-year period covered by the agreement.
We have also been engaged in a broader effort to cut our costs, and in North America alone have reduced our costs by $5 billion compared with year-end 2005. We also plan further cost and cash improvements to offset the increasing weakness in the global automotive industry.
Product.
We are not simply on a journey to cut and shrink our way to profitability. Instead, we very much
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