Mulally, 61, officially joined the Dearborn-based automaker as chief executive two weeks ago after being hired last month to replace Bill Ford. The former Boeing executive helped oversee 30 000 job cuts at Boeing's commercial airplane plants following the 2001 terrorist attacks that devastated the airline industry.
After hiring Mulally, Ford announced a plan to cut $5 billion in costs by the end of 2008 by slashing 10 000 white-collar workers and offering buyouts to all 75 000 unionised employees. Initially, the company in January called for cutting 30 000 jobs and closing 14 facilities by 2012.
Dearborn-based Ford lost $1.4 billion in the first half of 2006. It is expected to announced third quarter results next week.
Mulally in the e-mail painted a grim picture of the cutbacks needed for Ford to survive. He called it a "gut-wrenching" time for employees.
"As demoralising as a slide down may be, the ride back up is infinitely more exhilarating," he wrote. "Everyone loves a comeback story. Let's work together to write the best one ever."