Ford memo calls recovery off track

NEW YORK (CNNMoney.com) -- Ford Motor Co.'s "Way Forward" plan is falling behind and even the company's employees are losing faith, according to an internal Ford memo.

The contents of the memo, called the "Report Card for North America," were made public in a story in The Detroit News.

One strong point noted in the internal Ford memo was a strong launch for the new Edge crossover SUV.

Ford (Charts) missed its January retail sales goals by 10,600 vehicles - which represents almost 1 percent of market share - and expects to miss its market share goals for February and March as well, according to the newspaper story.

The shortfall in sales was "due to greater-than-expected segment shift out of pickups, unfavorable share performance related to SUVs and lower-than-planned availability of [Ford's] new products," the internal report said, according to the Detroit News.

The report did note a strong launch for the company's new Ford Edge and Lincoln MKX crossover SUVs, the newspaper said.

Ford also expects to miss material cost reduction goals for February and March, The Detroit News said.

Meanwhile, an employee survey included in the report showed that only 47 percent of Ford workers have confidence in the company's long-term success. Fewer than 45 percent said they believe Ford's "Way Forward" plan is working, according to the newspaper story.

Even fewer employees - 38 percent - feel Ford has "the right products to move the company forward," according to the newspaper.

That number is four points higher than before the company showed off its future product line-up for employees in December, the newspaper said.

The report is part of a shift toward greater openness and communication within the company that is, itself, part of Ford's "Way Forward" turnaround plan, according to a Ford spokesman quoted in the story.

Ford's new CEO, former Boeing executive Alle Mulally, continues to hold weekly meetings with top executives to monitor progress on the turnaround plan.

The failure to meet short term sales and financial goals is less important to the company than access to cash and financial flexibility, said an analyst quoted in the story. In December, shortly after Mulally took over as CEO, Ford mortgaged its U.S. assets to secure $23 billion in financing.

The company lost a record $12.7 billion last year.

A Ford spokesman did not immediately respond to a CNNMoney.com request for comment on the story.

Behind Ford's scary $12.7 loss

Forecasting auto winners - and losers - for 2007