The chairman of carmaker Ford has claimed that the company is in desperate need of a new direction.

In a leaked memo, Bill Ford said the firm was in need of a completely new business model to return it to profitability.

He also said the firm may explore possible tie-ups with other carmakers.

The car giant made a $1.3 billion (£680 million) loss in the first half of 2006 and in the latest comparisons with rivals Toyota and General Motors, consumers appeared to be turning away from the company in favour of more fuel-efficient vehicles.

Toyota's hybrid Prius model has been a huge hit since its introduction and Ford appears to have been caught out by the demand for more environmentally-friendly vehicles in the marketplace.

In a new interview with Newsweek magazine, Mr Ford said he may consider stepping aside for a suitable new leader, stating that he understood "extraordinary" action was needed to turn the business around.


Ÿ Adfero Ltd