JUNE 29, 2004
Ford looks for most cost-savings
The Ford Motor Company is currently engaged in a cost-cutting programme which the company intends to implement to help it towards its stated goal of ensuring annual pretax profits of $7bn within three years. The company has already cut around $6bn in costs and shed more than 22,000 jobs but continues to look for new ways in which to save money. The cost-cutting teams ahve already identified potential costs reductions of $780m with a reported $200m having been found through a redesign and standardization of safety components such as seatbelts. There are various teams in action within Ford but also at Jaguar and there is little doubt that every aspect of the Formula 1 operations, including Cosworth, is being analysed in detail. Ford chairman and chief executive Bill Ford says that the cuts will be made in general overheads rather than in new product development, which may protect the F1 programme.
Jaguar Racing sources say that the budgets for the team have been set for the next few years and that they do not expect the axe to fall but add that they must go out and find money to support the investment being made by Detroit.
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