Automobile News

The overwhelming menace of a dreaded global recession has taken many a public and private organisation completely by surprise. Its impact may vary from organisation to organisation, but one thing is sure, it has made companies reassess their policies and marketing agencies. The automobile industry is also hit hard, with drastic decline in the UK standing testimony to it.

The most recent company to feel the heat is Ford, one of the foremost car manufacturers in the world. The latest news emanating from the US is that the company is on the verge of collapse, unless of course it is bailed out by the government as part of a $25 billion bail out package. There might not be any sequels to Ford Racing 3 if the collapse were to happen, but far worse, hundreds of thousands of jobs would be lost and tremors sent through the world economy. Alan Mulally, the Chief Executive of the company, however, sounded optimistic amidst the surrounding gloom and offered to work for an annual salary of just one dollar in case the company manages to gets the government grant. It is not a small statement considering that Mr. Mulley is on a hefty pay roll of 2 million dollars a year.

Mr. Mullaly has also decided to sell Ford’s fleet of corporate jets, cancel next year’s bonuses for global management and US employees as well as closing more plants, et al so as to fuel congressional support. According to reliable sources the company is keeping its fingers crossed and expecting a bridging finance of around $9 billion. The company in the meantime has also claimed that if the government gave its approval it wouldn’t have to withdraw the money.

Mr. Mullaly explained that government loans would serve as a critical backstop or safeguard against worsening conditions for the company, as it (company) strives for transformational change within the company.