Ailing Ford to undergo major downsizing

Just 10 months ago, William Clay Ford Jr. vowed that his auto company, despite its mounting losses, would “reclaim our legacy" in the American car market and “emerge stronger than we’ve ever been."

But there is a new message coming out of the chief executive’s office at Ford. Alan R. Mulally, recruited last fall from Boeing to run Ford, has signaled that the bigger-is-better worldview that has defined Ford for decades is being replaced with a new approach: less is more.

Instead of insisting that Ford reverse its slide, Mr. Mulally says that Ford will become much smaller. Its forecasts show it may fall from second to fourth place this year in the American market, behind General Motors, Toyota and Chrysler. More at NY Times