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The latest belt-tightening follows a fall in sales of pick-up trucks, Ford’s best-selling models.The “Big Three” US car manufacturers – GM, Ford and DaimlerChrysler – have all been hit by the two-edged crisis afflicting the industry: falling demand for the truck and SUV “gas guzzlers” on which they relied for profits, and sky-high labour costs caused by fixed pension and health care benefits.But Ford has arguably suffered most. Additional restructuring costs could push total 2006 losses to $9bn.The latest measures could see a further acceleration of plant closures and job cuts – on top of the original “Way Forward” cost-cutting plan announced by Mr Ford in January, under which 30,000 jobs would be lost and 14 plants shut by 2012. The newspaper quoted an internal Ford document that put pre-tax losses by its worldwide car and truck operations at between $5.6bn and $5.9bn. Though most of its international manufacturing was loss-making, the bulk of the deficit came from operations in North America. The new measures were examined at a two-day Ford board meeting – the first to be attended by Mr Mulally, the former Boeing executive who replaced the family scion, William Ford Jr.The turnaround plan is Ford’s second attempt since January to come to grips with falling market share.The latest chapter in the company’s long history of woe was revealed by the Detroit News.

Meanwhile, two top Ford executives, including Americas chief operating officer Anne Stevens, stepped down just over a week after Alan Mulally took over as chief executive.
Ford said it would announce its long-awaited update to its restructuring plans today. Three of these are set to open in Copenhagen, two in Tokyo and one in the refurbished Royal Festival Hall in London.. Ford, faced by losses that could reach $9bn (£4.8bn) this year, will offer buyout packages of up to $140,000 to all of the more than 75,000 workers at its US plants, it was reported last night. With more of our managers having meaningful financial stakes in the future success of our group, I believe our restaurants can get better and better.”BoS is investing £10m in expanding the business, with six new outlets planned in the next year. Some 40 managers and staff at the restaurants, which include City eateries such as Le Coq d’Argent, Quaglino’s and Bibendum, will become shareholders in the restaurants as they are spun out of Sir Terence’s private Conran Holdings.
Sir Terence, who is 75 next month, will retain a 51 per cent stake in the business, but is handing over the role of chairman to Des Gunewardena, chief executive of Conran Holdings.The buyout is being backed by Bank of Scotland, which raises the possibility that the restaurants could be floated in several years’ time. Most private equity groups seek an exit from their investments through a flotation or trade sale, within three to five years.The newly created company also includes Conran Holdings’ 25 per cent stake in the AIM-listed Bank Restaurants, which dates to the sale of Sir Terence Conran’s Zinc Bar and Grill to Bank Restaurants last year.Mr Gunewardena, who joined Conran Holdings as finance director 10 years ago, said: “We have a first-class restaurant business with lots of potential for growth. Sir Terence Conran is selling a stake in his restaurants business in a move that will net the veteran designer and restaurateur more than £24m.

This week, BAE warned that the delays on the A380 super-jumbo project could be even worse than thought.. But they added that EADS had a strictly defined corporate governance structure with clear rules that could not be circumvented to accommodate individual outside shareholders.The Russian investment comes as EADS prepares to buy out BAE Systems’ 20 per cent stake in Airbus for £1.9bn. They originally owned 60 per cent of EADS but sold down 15 per cent of their joint shareholdings earlier this year.The Russian stake-building took EADS by surprise, coming hard on the heels of a profits warning from the company which wiped 25 per cent off its stock market value.The two EADS chairmen said they welcomed any investment in the company by supportive shareholders and said the company had “great interest” in extending co-operation with the Russian aerospace industry. In particular, it could compromise attempts to win US military contracts, including a $100bn (£53bn) order for air-to-air refuelling tankers.EADS is controlled by three founding shareholders – the French state, the French media conglomerate Lagard? and the car maker DaimlerChrysler – which between them own 45 per cent of the company.

It would not be in the interest of the company to change corporate governance or enlarge the group of industrial shareholders,” the statement said.EADS is thought to be concerned about the impact on its defence business of the Russians gaining board representation. A similar message is due to be conveyed by the French President, Jacques Chirac, to the Russian President, Vladimir Putin, when he makes a state visit to Paris next week.
The state-owned Russian bank Vneshtorgbank bought a stake of a little more than 5 per cent in EADS last week. It followed this up by saying it wanted board representation and was considering increasing its stake so it had a blocking minority in EADS.However, in a joint statement, EADS’s co-chairmen, Manfred Bischoff and Arnaud Lagard?, ruled out the Russian request for a boardroom seat, saying it was not possible under the company’s corporate governance arrangements.”The existing corporate governance rules and structure have proved their efficiency for all shareholders. EADS, the Franco-German aerospace and defence giant which owns Airbus, yesterday rejected demands from its new Russian shareholder for a seat on the board. Fears of a global pandemic have risen over recent years because of the spread of the avian flu virus H5N1 among migratory birds.

This virus can cause severe illness in humans who contract it from birds. The strain of bird flu cannot yet cause a pandemic as it is not currently capable of being transmitted between human beings.. The flu pandemic is the fourth such exercise and a report will be published once the simulation has been concluded and the findings examined.Many banks have already been preparing for a potential flu outbreak in the UK and its possible consequences. More than 60 financial organisations have been invited to participate.The authorities hold such an exercise once a year to determine the financial services sector’s ability to deal with crisis. The resilience of home-working systems and technology will also be examined, and businesses will be asked to consider the possibility of litigation issues arising from a flu pandemic as well as possible insurance cover.The exercise will be conducted by the Treasury, the Bank of England and the Financial Services Authority. More than 1,000 people were involved in that event to determine whether markets could function after a major disaster.
Instead, the pandemic trial will be held over a longer period with the scenario evolving in line with the responses of participants to the potential effects of a flu pandemic. A spokeswoman for the FSA said the initial stages of the simulation would involve low-level threats but would also look to determine the impact of a disruption to transport, power and telecoms services.Participants will consider the prospect of significant staff shortages and how to segregate or isolate affected workers.