DETROIT -- Ford Motor Co. said Wednesday it estimates that its restructuring plan, dubbed "Way Forward," will cost the automaker a total of $11.18 billion, with most of that going to programs to lay off employees.
The No. 2 U.S. automaker said in a Securities and Exchange Commission filing that it had already accrued $9.98 billion of the restructuring costs in 2006.
The balance, primarily related to salaried job cuts, would be spent in the first quarter, Ford said.
Ford, which lost $12.7 billion last year, is closing 14 North American plants and cutting 37,000 union workers and 14,000 salaried workers in the region as part of a plan to return to profit by 2009.
The restructuring costs include $5.96 billion on worker reduction programs, another $2.74 billion on pension-related charges, $2.2 billion for fixed-asset impairment charges and $281 million associated with plant idlings.
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Ford said it also expects a curtailment gain for other post-retirement employee benefit obligations related to hourly job cuts occurring in 2007.
Separately, Ford said in its annual report that it is subject of a lawsuit that alleges the company failed "to prudently and loyally manage funds held in employee savings plans" because the company allowed employees to buy Ford stock in the plans.
Ford, denying wrongdoing, said it intends "to defend the matter vigorously."
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