Lower capital expenditures associated with the completion of the GMT-900 product launch affords AXL the flexibility to absorb the heavy costs of the employee buyout programs
Since inception, Advent has raised $24 billion in private equity capital and, through its buyout programs
, has completed over 250 transactions valued at approximately $45 billion in 35 countries.
Hourly buyout programs
, salaried employee reductions and an expected UAW health care deal (similar to agreements signed by the UAW with Ford and GM) provide confidence that near-term fixed cost savings are achievable.
6 billion) in private equity capital and, through its buyout programs
, has completed over 250 transactions valued at approximately $45 billion (euro 37 billion) in 35 countries.
Although meaningful reductions have taken place in GM's fixed cost structure through hourly buyout programs
, reductions in salaried headcount and changes to hourly and salaried health care programs, cash flow is expected to remain negative in 2007.
Operating challenges will also include significant changes to the workforce resulting from the massive buyout programs
at Ford and GM.
Ford continues to spend aggressively on employee buyout programs
, although the completion of the hourly buyout program
will extend to the third quarter of 2007, deferring full realization of the cost savings.
Charges and cash outflows related to employee buyout programs
are expected to continue over the intermediate term as Ford attempts to take out structural costs apace with capacity reductions.
JPEF will pursue the same highly-successful investment strategy deployed across all Advent buyout programs
Ford has more than adequate liquidity over the near term to finance the required employee buyout programs
and closure of facilities, although the pace and extent of the restructuring will be dependent on Ford's progress in negotiations with the UAW.
Ford has stated that it will undertake a more fundamental restructuring to address its persistent over-capacity in the North American market, and these actions are expected to result in meaningful facility closures, employee buyout programs
and assisted asset sales.
Stabilization of cash flows from the cost side could arise from a combination of sources including: commodity price relief, structural cost reductions from employee attrition and buyout programs
, restructuring actions at Ford facilities and the acquired Visteon assets, a strengthening dollar (benefiting PAG imports into the U.