Axing a quarter of its US workforce is Ford's answer to putting the company back on top. But will it work? Bernard Simon in Detroit and James Mackintosh in London report.
Mark Fields has had little time for anything other than work since he arrived in the Detroit suburb of Dearborn in September to take charge of Ford Motors troubled North American operations.
Living in a sparsely furnished apartment close to the office and away from his family, Mr Fields has spent long hours rallying the troops and putting together a recovery plan for the world's third biggest car-maker.
Mr Fields and Bill Ford, chairman and chief executive, spelt out their strategy on Monday: Ford will axe almost a quarter of its north American workforce and close seven vehicle factories by 2012.
The news comes after Ford's rival General Motors said last year that it would cut 30,000 jobs from its north American workforce. Waves of job cuts have devastated cities built on the car industry. Detroit - Ford and GM's home town - is now the poorest big US city.
The north American operation has been struggling against fierce competition from Asian manufacturers, high labour and raw material costs, and consumers' shift from high-margin sport-utility vehicles as oil prices soar.
Ford's aim is to return the North American operations of the world's third biggest carmaker to profit by 2008. Mr Ford has said he is looking to Mr Fields "to turn the place round."
The Way Forward comes four years after Mr Ford, Henry Ford's great-grandson, launched a revitalisation plan aimed of lifting pre-tax profits to €5.8 billion by 2006. That goal has been abandoned. Mr Ford and Mr Fields have vowed to staunch Ford's slide this year. Mr Fields, who turned 45 yesterday, has a sales and marketing background.
He spent his early career at IBM selling typewriters. He made his mark between 2000 and 2002 by turning round Mazda, Ford's Japanese affiliate, from a basket case to one of the car-maker's few bright spots.
Several of his former protégés at Mazda have risen with him, indicating the respect in which the Japanese recovery is held in Dearborn.
Mr Fields went on to head Ford of Europe and the car-maker's international luxury car group, including Volvo, Jaguar, Land-Rover and Aston Martin.
He showed a tough streak at Mazda and in Europe. "I told the Mazda team very directly - change or die," Mr Fields recalls.
A restructuring at Jaguar has involved closing its historic Brown's Lane factory in Britain, selling its Formula One racing team and abandoning a target of pushing sales to 200,000 cars a year. But Ford has been forced to retreat from its goal of restoring Jaguar to profit by 2007.
Mr Fields has brought a similar urgency to Dearborn where morale has been hit not only by Ford's poor results but also by management turmoil. Mr Fields is the fourth head of North American operations in four years.
Using one of his trademark sports clichés, Mr Fields said this month: "I've given the Ford team the same challenge.
"It's time to play offence. It's time to take back our future. And the clock is ticking."
One Ford manager says his new boss has "been a breath of fresh air".
Mr Fields has cut people out of meetings who do not need to be there. In a break from Ford culture, he has encouraged subordinates to speak their minds.
"If he goes with a different decision to what you had suggested, that doesn't mean you're an idiot or banished from the next meeting," the colleague says.
Mr Fields's upbeat, self-confident demeanour has also made its mark.
As part of his drive to boost morale, he has asked senior managers to wear blue wristbands bearing the words, "Red, White & Bold".
The slogan, he says, "is not about wrapping ourselves in the American flag - it's an internal rallying cry that reminds us what will drive us to success."
Mr Fields is in a strong position to succeed Jim Padilla as Ford's chief operating officer.
Though Bill Ford is still a relatively young 48, speculation is rife that, if the Way Forward plan produces results, he may decide to lighten his load by giving Mr Fields another promotion.