Ford Motor Corporation has submitted a proposal asking Congress for a credit line of approximately $9 billion, saying it expects to break even or be profitable before taxes in 2011.

The automaker said it does not anticipate a “liquidity crisis” in 2009, barring a competitor’s bankruptcy or more severe economic slump. Ford also plans to sell five corporate jets and would pay Chief Executive Officer Alan Mulally a $1 annual salary should the company need to access the loan.

“For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company,” said Alan Mulally, chief executive of Ford.

Part of its plan submitted to Congress, calls on Ford to explore strategic options for Volvo, including a possible sale of the Sweden auto maker. The company said its expects both its overall and its North American automotive business pre-tax results to be break even or profitable in 2011, excluding any special items.

Ford also said its plan calls for an investment of about $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency in the next seven years. The company plans to accelerate vehicle electrifications 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 also said it would sell its corporate aircraft as part of its plan to improve its cash position.

According to Ford, it will improve the fuel economy on its largest light duty trucks to its smallest cars. Ford said it will improve the fuel economy of its fleet an average of 14% for 2009 models, 26% for 2012 models and 36% 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.

At the same time the car makers are gearing up to make their case for new loans, the United Auto Workers union will hold an emergency session to determine what concessions they can provide. News reports said the meeting, to be held Wednesday, could center on restructuring the union-administrated health care fund so the car makers can delay payments and potentially eliminating the jobs banks, which pays laid off workers. Both the car makers and the UAW are facing intense pressure to help the struggling auto industry that’s expected to see more of a decline in sales for November.

Ford said in its press release that its engaged in talks with the UAW about reducing the cost structure further and eliminating the remaining labor cost gaps that exposits between Ford and the transplants.

By the end of the year Ford estimates it will have 3,790 U.S. dealers, a reduction of 606 dealers overall – or 14% from 2005 – including a reduction of 16% 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%. Ford eventually plans to further reduce the number of suppliers eligible for major sourcing to 750.”

Ford Submits Bailout Pitch to Congress By Donna Fuscaldo, http://www.foxbusiness.com/story/markets/big-automakers-submit-plans-congress/#

Ford, GM and Chrysler are under pressure to convince Congress that their plans to shrink are severe enough to ensure repayment of $25 billion in proposed U.S. loans. Today is the deadline for turning in the plans, and a vote on the aid may come sometime next week.

FORD MOTOR ASKS CONGRESS FOR $9 BILLION CREDIT LINE (UPDATE2) By John Hughes and Mike Ramsey 12/2/08, http://www.bloomberg.com/apps/news?pid=20601087&sid=aJQrO7TRuSjU&refer=home#

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