Ford to pay workers $1000 bonus despite $2.7b loss

Despite losing $2.7 billion in 2007, Ford has announced that it will still be paying performance bonuses to its employees in the U.S., Canada, and to its management teams worldwide. CEO Alan Mulally announced the bonuses saying that the company had made enough significant progress over the last year to warrant such actions. However Mulally also announced that to meet cost objectives for 2008, salaried workers’ merit raises shall be delayed three months from April 1st to July 1st.

The Associated Press reports that while salaried workers will receive bonuses based on pay grade and seniority, hourly workers will receive lump-sum bonuses of $1000. A Ford spokesperson stated that roughly 98,600 workers worldwide will be getting performance bonuses this year.

Ford failed to achieve its market share goals in Asia, North America and South America, but still managed to meet all its other market share goals internationally. Company objectives in areas such as quality, cash flow and cost performance were also met, leaving it in a far better position than 2006, for which it declared a $12.6 billion loss. Mulally believes that Ford is on-track to be profitable once again in 2009.