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Ford revamp set to cost it $11 bln

US car giant Ford says its current restructuring program is set to cost $11 bln (£5.6 bln), with more than half of the costs coming from shedding staff.

Data in a Securities and Exchange Commission (SEC) filing showed that nearly $6 billion of costs would stem from its worker reduction program. Ford, which reported a record loss of $12.7 billion last year, is implementing a massive turnaround plan. It has plans to cut 51,000 jobs in order to return to profitability. That includes 14,000 salaried staff as well as 37,000 hourly workers on the factory floor. As part of the plan, Ford is also cutting back its capacity sharply as its market share falls, closing 14 plants. The restructuring program aims to make the company profitable by 2009. Reports have suggested that the firm - the second-biggest carmaker in the US - may be overtaken by Toyota in its domestic market this year. In January, it fell to 4th place in the US market. Ford has been heavily dependent on sales of its trucks and sports utility vehicles (SUVs), and higher fuel prices have made them less popular with US consumers. (BBC NEWS)