Ford's bailout plea to include pledge for smaller cars

Updated: December 1, 2008 - 11:42 PM

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Ford Motor Co. plans to tell Congress it is retooling itself to build small fuel-efficient cars and break from the strategy of focusing mainly on large pickup trucks and sport-utility vehicles, and will cut the compensation of Chief Executive Alan Mulally, as part of its bid to win support for a federal bailout of the Big Three automakers, a person familiar with the matter said.

Ford and General Motors Corp. directors were meeting separately Monday to approve the viability plans the two automakers will submit to Congress today as part of a second appeal for $25 billion in low-cost loans from the government.

At Chrysler LLC, which appears to face the most urgent need for cash, top executives were putting the finishing touches on their own presentation to show that the company can survive and return to profitability with government help. Chrysler's private-equity owner, Cerberus Capital Management LP, was reviewing the plan Monday afternoon.

Ford's plan likely would emphasize its new fuel-efficient gasoline turbocharged direct-injection engines across its lineup and plans to bring popular, high-mileage cars from its European operations to the United States, a person familiar with its plans said.

It is unclear how Mulally's pay package will be reduced, that person said. Ideas under consideration included eliminating his salary until the company returns to profitability, or replacing his salary with more stock options, this person said. The CEO's total compensation has been close to $50 million since he took the helm of Ford in 2006.

WALL STREET JOURNAL