"The Way Forward contains some strong medicine for the North American business," Bill Ford said.

"Our plants are running at 75 percent capacity use," Fields said. "That is clearly unsustainable."

Ford Motor Co.'s "Way Forward" plan calls for shutting down seven assembly plants and seven parts plants and cutting between 25,000 and 30,000 factory jobs by 2012.

Seven assembly plants will close, Ford said. But the automaker named only three of them:

• St. Louis, which builds the Ford Explorer and the Mercury Mountaineer SUVs. It will close in the first quarter of this year.
• Atlanta, which builds the Ford Taurus. The plant will close late in 2006. Taurus production is set to end on Aug. 31, sources have said.
• Wixom, Mich., which builds the Lincoln LS, Lincoln Town Car and Ford GT. It will close in the second quarter of 2007.

Ford will reduce production at the St. Thomas, Ontario, assembly plant sometime in 2007, said Buzz Hargrove, president of the Canadian Auto Workers. That will cut jobs at the plant from 2,500 to 1,300, he said.

Of the seven parts plants to close, Ford named only two:

• The Batavia, Ohio, transmission plant that builds four-speed automatics used in the Ford Escape, Mercury Mariner and Mazda Tribute SUVs. It is also Ford's only plant that builds continuously variable transmissions used in the Ford Five Hundred and Mercury Montego sedans and the Ford Freestyle sport wagon.
• A casting plant in Windsor, Ontario.

Ford said it would reduce its corporate officer ranks by 12 percent by the end of the first quarter. The departure of six or seven officers will be announced Tuesday, Jan. 24, said Joe Laymon, Ford group vice president of corporate human resources and labor affairs. Ford currently has 53 officers.

Steve Lyons, group vice president of marketing, sales and service, will be one of the departing executives, sources have said.

White-collar layoffs also will occur throughout this week, said Laymon. Ford says it will reduce 4,000 salaried jobs during the first quarter of 2006.

Ford will not offer any earnings guidance for the future. The reason, Ford officials said, is so that executives have a long-term focus that will lead to sustainable profitability.

Cuts in material costs of at least $6 billion by 2010.

Capital expenditures of $7 billion by 2006.

Vehicle pricing that is closer to transaction prices, with smaller rebates. Said Fields: "We're committed to this, even if the competition backslides."

Offering hybrid technology on half the nameplates in the Ford, Mercury and Lincoln divisions. Hybrid versions of the Ford Five Hundred and Mercury Montego sedans and the Ford Edge and Lincoln MKX sport wagons will arrive between 2008 and 2010. Hybrids will be offered on the Ford Fusion and Mercury Milan sedans in 2008.

Increased spending on products, with more frequent styling freshenings. Ford said it will spend more money on the F-series truck lineup. Mercury products will get more expressive design, and the brand will offer a "unique purchase experience," the automaker said.

Greater use of global vehicle platforms, especially for cars and sport wagons, and more sharing of components.