In a memo to employees at the automaker, Ford Chief Executive Alan Mulally said the board had decided to pay the bonuses because of the progress the company had made in a turnaround effort aimed at restoring profitability by 2009.

'While we fell short of our market share goals in the Americas and Asia, we fully met or exceeded our objectives in every other category, namely cost performance, quality, automotive cash flow and financial results,' Mr Mulally said in his note to staff.

In addition, Ford said that it would delay planned merit raises for salaried workers until July 1 from April 1 because of the tough market conditions it faces this year.

'While 2007 was a year of progress, the economic and business environment will be tougher than ever in 2008,' he said.

Ford said most employees would receive their bonus payments on March 13.

Hourly workers, including about 54,000 represented by the United Auto Workers union will receive a lump-sum amount of US$1,000, the automaker said.

The bonuses come at a time when all of Ford's US factory workers are considering buyout and early retirement incentives, including one-time payouts of up to US$140,000.

An earlier round of buyouts cut almost 34,000 workers from Ford's payroll in 2006.

Dearborn, Michigan-based Ford was the only one of the three Detroit-based automakers to clinch a cost-saving contract with the UAW last year without a strike, and it is widely considered to have a more collaborative relationship with the union than its direct rivals.

In the last round of contract talks, Ford won the right to hire new workers at about US$14 an hour, or roughly half the current hourly rate. The automaker has said it does not expect to hire any factory workers at the lower wage rate until next year. -- REUTERS