By 2005, both Ford and GM's corporate bonds had been downgraded to junk status,[

18] as a result of high U.S. health care costs for an aging workforce, soaring g
asoline prices, eroding market share, and an over dependence on declining SUV sa
les. Profit margins decreased on large vehicles due to increased "incentives" (i
n the form of rebates or low interest financing) to offset declining demand.[19]
In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford Ameri
cas Division President Mark Fields to develop a plan to return the company to pr
ofitability. Fields previewed the Plan, named The Way Fddorward, at the December
7, 2005, board meeting of the company and it was unveiled to the public on Janu
ary 23, 2006. "The Way Forward" included resizing the company to match market re
alities, dropping some unprofitable and inefficient models, consolidating produc
tion lines, closing 14 factories and cutting 30,000 jobs.[20]