Ford Unveils Plan To Invest $14 Billion In New Technologies

DOW JONES NEWSWIRES

Ford Motor Co. (F) unveiled its latest plan to turn around its operations as the auto maker seeks $9 billion in bridge financing from the U.S. government.

The company's plan includes $14 billion in U.S. spending over the next seven years as the company retools its 2015 models to be 36% more fuel-efficient than its 2005 models.

"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 Chief Executive Alan Mulally in a statement.

As part of the plan, the company said it would restructure to operate profitably in the current economic climate, improve its balance sheet and accelerate development of new products to match shifts in customer interest.

Ford sees U.S. sales below historical norms, with sales of 12.5 million vehicles in 2009, 14.5 million in 2010 and 15.5 million in 2011. This year's industry sales are projected to be about 13.5 million, down from last year's 16.1 million.

Despite what it sees as a protracted sales slump, Ford said it should break even, at minimum, both overall and in North America in 2011, excluding items.

Ford, General Motors Corp. (GM) and Chrysler are presenting their turnaround plans to Congress Tuesday, weeks after legislators balked at passing an aid package. Congress ordered the auto makers' CEOs to come back with detailed plans for turning around their companies. The executives had defended their management practices, blaming their current problems on the economic crisis.

Shares of Ford were up 13% to $2.89 in recent trading.