Ford Chief Executive Alan Mulally said Wednesday the company's sweeping turnaround plan remained on track but the automaker needed to pursue consolidations within its dealership network to improve its fortunes.
Mulally, speaking to reporters at the New York International Auto Show, also suggested "our wages and benefits are not where they need to be to be competitive" in advance of significant contract talks this summer with the United Auto Workers.
"If there is not a competitive Ford, it's not going to be OK for anyone," Mulally said.
Ford Motor Co., which has announced plans to shutter 16 plants, lost $12.7 billion last year and mortgaged its factories, brand names and other items to secure a $23.4 billion line of credit to fund its restructuring plan and cover losses expected until 2009.
In a speech opening the auto show, Mulally billed it "the biggest home improvement loan in the history of mankind."
Mulally said the company's restructuring was going pretty well, but described some steps the venerable automaker needs to take to make itself more competitive.
He cited "overcapacity in our distribution network" and said when that occurs, "you need to consolidate to match capacity to demand." The automaker has more than 4,000 dealerships across the nation, but Mulally declined to cite a target number of reductions.
During the show, Ford showed off its new crossover vehicle, the Ford Flex, and some limited edition vehicles, including the Shelby GT500KR Mustang, to attract fans of custom vehicles.
Mark Fields, Ford's president of the Americas, said the Flex, featuring three-row seating for seven passengers and unique attributes such as a small refrigerator, would be a "game-changer" in the crossover segment.
"Ford intends to be the defining crossover company this decade, just as we defined SUVs in the 1990s," Fields declared.
Also at the auto show:
* DaimlerChrysler AG said the all-new 2008 Jeep Liberty will offer a more rugged look that stays loyal to the brand's roots. The new Liberty, available this fall, has a full-open canvas roof giving motorists an open-air driving experience, along with improved handling.
Jeep also unveiled its 2008 Jeep Grand Cherokee, featuring an all- new 4.7-liter V-8 engine providing a 30 percent increase in horsepower and improved fuel economy.
* BMW AG showcased its new 5-series vehicles with updated six- cylinder engines.
Rich Brekus, BMW's general manager for product planning and strategy, said the 525i sedan would be upgraded and renamed the 528i, offering 230 horsepower and a half-second improvement in zero- to-60 acceleration.
The 530is, meanwhile, will be upgraded to the 535i model, equipped with twin-turbo charged inline six-cylinder engines with 300 hp. Brekus said the interiors will be more luxurious and feature USB adapters for owners with iPods.
* Subaru of America unveiled its redesigned 2008 Tribeca, which includes a new grill, bumper and lights, along with completely revamped front, rear and side panels.
Tom Doll, executive vice president for Subaru North America, said that not only is the new model better looking than its predecessors, it's more powerful and fuel efficient too.
* Toyota Motor Corp.'s Lexus brand unveiled its new luxury sport utility vehicle, the 2008 Lexus LX 570. Bob Carter, Lexus Group vice president and general manager, said the new LX 570 is rugged and powerful, providing 381 horsepower in a 5.7-liter V-8 engine, along with 8,500 pounds of towing capacity.
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