Ford's revitalization plan has supplier component

DEARBORN, Mich. (Jan. 14)—As part of sweeping restructuring actions Ford Motor Co. is taking to strengthen its market position and financial results, the auto maker has initiated a material cost reduction program with its North American suppliers which shares design savings. Under the plan, Ford will get 65 percent of implemented cost reductions the first year, while suppliers will get 35 percent. New designs will be expected to help improve Ford's overall product quality, the auto maker said. Ford expects the program, along with other, unspecified material cost reduction efforts, to improve its profits before taxes by $3 billion annually by middecade. The plan also calls for Ford to reduce its global work force by about 35,000, close five plants, downsize and reduce shifts at 11 facilities and reduce line speeds and change operating patterns at nine other factories to reduce North American manufacturing capacity by about 1 million units by middecade.