Ford CEO Willing to Work for $1 Per Year if They Can Secure Government Grants

Still hoping to snag a government bailout loan, Ford Motor Co. submitted plans to Congress on Tuesday indicating that it plans cancel all management employees' 2009 bonuses and that it will not pay any merit increases for its North American salaried workers next year. CEO Alan Mulally is set to appear before two legislative committees this week, and will tell Congress that Ford plans to return to a pretax profit or break even in 2011. Mullally also said that he will work for just $1 per year if Ford has to take any government loan money. Furthermore, Ford said that it will sell its five corporate aircraft.

The CEOs of the country's top Detroit-based automakers were all harshly criticized last month during congressional hearings for flying to Washington D.C. in separate corporate jets while asking for a loan.

In an interview with the AP, Mulally said that Ford will seek $9 billion in government loans, but that they might not need them. They said they have enough cash to make it through next year without assistance. According to the plan submitted to Congress today, Ford said it doesn't 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." Ford says the loan would safeguard against worsening conditions.

Ford promised to accelerate plans to introduce plug-in electric vehicles as a part of its plan, and said they will start coming out in 2010. Amongst the vehicle roll-outs will be the Transit Connect small van, and a car the size of the Ford Focus compact.

In the interview, Mulally said that they will be giving much more detail to Congress than it did last month when the automakers' CEOs were questioned last month. He also said that Ford will emphasize its cost cutting efforts with the United Auto Workers union.

The CEOs of Ford Motors Inc., Chrysler LLC, and General Motors Corp. are scheduled to appear before congressional committees Thursday and Friday to seek a total of $25 billion in government loans.