Ford has announced some major changes as the company attempts to reduce operating expenses and move forward to design a new breed of vehicles. Here's the short of it:

• Ford plans to cut operating costs cut by $5 billion and will do that in part by reducing its salaried staff by about a third—or 14,000 jobs.

• The United Auto Worker's union and Ford have come to an agreement on buyout offers for hourly employees.

• 25,000 to 30,000 total employees will be affected. Job cuts that had originally been planned to happen by 2012 are pushed forward to a 2008 target.

• ACH operations will all be sold or closed by the end of 2008. ACH is a temporary business that was created when Ford bought Visteon Corporation, its largest supplier.

• Nine facilities will be shut -- two more than previously announced.

• A majority of Ford, Lincoln and Mercury products will be changed significantly by the end of 2008.

• Ford will have a new full-size crossover vehicle for 2008. It'll be based on the Fairlane concept.

• Development of crossovers and smaller cars will be priorities and vehicles will be based on vehicles already sold in other parts of the world.

• Watch for new powertrains: gas, flex-fuel, diesel, hydrogen and hybrid -- scheduled to be in vehicles by the end of 2008.

• Ford recognizes that its trucks are still a critical part of its business and will redesign the F-150 for 2008.

The 2008 date sounds like it's Ford's magic number for cutting costs and moving forward to be a more profitable company. But restructuring the company won't do too much to help Ford long term unless it learns from past mistakes and pays attention to what consumers want and need. It's too bad the Japanese automakers don't hold "how to" classes for American execs.

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