DEARBORN, Jan. 29, 2009 -- Despite losing $5.9 billion in the fourth quarter of 2008 and $14.6 billion for the full year, President and CEO Alan Mulally reassured employees that Ford remains on track to be at or above breakeven in 2011. 

While acknowledging the losses, Mulally says he is optimistic about the future, considering Ford's performance in some key metrics during what he called "one of the worst (economic) situations I've ever seen."  Specifically, Mulally noted Ford's progress on reducing costs, as well improving market share in the U.S. during each of the last three months of 2008. 

"We think that with the product lineup we have and the product lineup that is coming, we are going to be able to do something that we haven’t done in 12 to 15 years.  And that's stabilize market share so it can grow again," Mulally explained, during remarks to employees at a live town hall meeting at World Headquarters to discuss the company's 2008 fourth quarter and full-year financial results.  The meeting was also webcast live via @Ford Online.

Mulally also said that Ford's decision to pare production of cars and trucks last year to better match consumer demand has the company in a better position than some of its competitors. 

"We took that action decisively, so in a big way we have this behind us now, which means that if (the sales rate) kind of stays where it is in the first two quarters and starts to come back, we'll start to come out of this like a turbo machine," said Mulally. 

Ford burned through $21.2 billion in cash last year, a figure that Mulally stressed will be "significantly less" in 2009.  The company is drawing on its available credit lines of $10.1 billion due to concerns about the instability of the capital markets and the uncertain state of the economy. Mulally added, however, that the company does not anticipate needing the money or a bridge loan from the U.S. government.

Mulally praised the UAW for working with Ford to eliminate the "jobs bank" at the Dearborn-based automaker.  Details will be announced at a later date, but such a move will allow Ford to remain competitive.   

At one point during the town hall meeting, Mulally admiringly rubbed his hand over the front of a new blue European Ford Fiesta and a brilliant red 2010 Ford Taurus that were positioned on the stage behind him.

"Essentially, we have, through the worst of times, kept our cycle plan intact," he said, ticking off a list of awards and honors captured by Ford Motor Company vehicles around the world.  

In closing, Mulally thanked employees for their hard work and urged them to continue working together. 

"We have a plan in place, we have the financing in place and we're going to (get through) this like nobody else," he said confidently.