The ratings on Ford Motor Co. and its subsidiaries reflect the wide-ranging difficulties facing Ford's North American automotive operations, which are now expected to remain unprofitable until at least 2009--while the automotive operations worldwide burn about $17 billion in cash. Ford's most recent response to the massive challenges of market share erosion, excess capacity and headcount, and adverse product mix trends has included additional cost cutting as part of an accelerated restructuring plan. The cash savings from this plan may prove significant, but will take considerable time to materialize. Some progress has already been made, as about 35,000 out of 75,000 U.S. hourly workers have accepted a buyout offer, and most of those employees will be leaving by September 2007.
