The plan aimed to reduce fixed capital costs while allowing Ford to maintain a special focus on cars and car-based crossover vehicles.
Fields previewed the plan at the December 7, 2005 board meeting of the company, and it was unveiled on January 23, 2006 to the public.
[1] The plan included resizing the company to match market realities, dropping some unprofitable and inefficient business models, consolidating production lines, and shutting down seven vehicle assembly plants and seven parts factories.
Up to 30,000 hourly and salaried jobs (28% of the total workforce) in North America over the next six years were expected to be eliminated, which is comparable to similar cutbacks previously announced at General Motors.
It also included the sale of wholly owned subsidiary Hertz Rent-a-Car to a private equity group for $15 billion in cash and debt acquisition.
[citation needed] Ford reportedly offered severance packages of up to $100,000 for workers who are willing to give up all future benefits except their pension.
[8] Ford's plan called for divesting, selling, and closing some businesses in order to raise cash.