Update: Ford Asks Congress For $9 Billion

December 2, 2008 12:51 p.m. EST

Washington, D.C. (AHN) - Ford Motor Co. submitted to Congress a new business plan to turnaround its struggling operations. The company expects to break even by 2011 and plans to supply electric vehicles by 2010.

The automaker laid out a restructuring plan that includes the canceling of all 2009 bonuses for management worldwide. Ford will also reduce its dealer base with a target of 3,790 dealers by the end of 2008 and further reduce labor costs through negotiations with the UAW.

The company also announced that it will sell its five corporate jets in order to raise additional cash.

Ford is seeking up to $9 billion in accessible financing to help bridge business operations if needed.

However, the automaker made it clear that government loans will serve as a backstop and will only be used if needed. The company hopes to restructure without the need for government funding.

Ford CEO Alan Mulally said he would take a $1 annual salary if the automaker needs to access the government funds.

The company said its restructuring plan calls for a $14 billion investment in the U.S. on technologies to improve fuel efficiency.

Ford also announced its plan for electric vehicles. The automaker expects to have a full battery electric van for commercial fleet use ready in 2010 and an electric sedan come 2011.

Shares of Ford rose 10 percent on the news and were trading at $2.83 going into Tuesday afternoon.