Gettelfinger said in a letter to 42,000 hourly Ford workers that the company lost $14.6 billion last year and is burning through $1 billion per month to stay in business because revenue has dropped so dramatically.

He recommends that members vote for concessions and points out that the union was able to preserve base pay, keep current health benefits and pensions and prevent further plant closures.

But the union has also agreed to give up cost-of-living pay raises and cash bonuses, and the company will offer another round of buyout and early retirement incentives to shed more workers.

Ford shares rose a penny to close at $2.01 in trading Wednesday.

On Tuesday, local union leaders were told that Ford would make buyout or early retirement offers to all 42,000 U.S. hourly workers. The union also agreed to take as equity 50 percent of the payments that Ford is required to make into a union-run trust fund that will take over retiree health care expenses starting next year.

In addition, the company's top two executives, Chief Executive Alan Mulally and Executive Chairman Bill Ford Jr., will take 30 percent pay cuts.

Ford has used up $21 billion of its cash reserves last year, Gettelfinger said in the letter.

"The company cannot continue to sustain this level of losses and stay in business," he wrote.

Ford mortgaged all its assets to borrow roughly $25 billion and has been able to avoid taking government loans, unlike its U.S. competitors, Chrysler LLC and General Motors Corp.

With U.S. auto sales running at an annual rate as low as 9 million to 10 million units, down from 16 million or 17 million in past years, "no auto company, including the transplants, can continue operations without significant modifications," he wrote.

Members nationwide now must vote on the deal, with balloting to be finished by March 9, the union said.

Ford spokesman Mark Truby said the company continues to focus on its restructuring plan.

"Clearly it's important for us to get competitive and return to profitability. That's the key to our long-term future," he said.

The agreement summary says that Ford recommitted to build products at all current assembly plants except the Ranger small pickup truck plant in St. Paul, Minn., which is scheduled to close in 2011.

The company also agreed to study bringing in seat assembly work to Ford plants, and it agreed to restructure four former Visteon Corp. parts plants now in a holding company and keep them open through 2011. The plants are in Milan, Saline and Plymouth Township, Mich., and Sandusky, Ohio.

The buyout and early retirement offers aren't as lucrative as those made in the past, but they're better than those offered earlier this year by GM and Chrysler.

Retirement-eligible skilled trade workers will get up to $40,000 to leave the company, while retirement-eligible production workers would get $20,000. The company will offer $50,000 in buyouts for those not eligible to retire who have at least one year of seniority.

Most would get a $25,000 voucher to buy a car or a $20,000 cash payment as well.

There also is an option to leave the company and get benefits and payments for education.

Concessions include a provision that overtime is paid only after a 40-hour week. Previously workers got time-and-a-half wages if they worked more than eight hours per day. The new provision allows the company to be more flexible with scheduling, including four straight 10-hour days.

The union also agreed to eliminate the Monday after Easter as a holiday, and it agreed to seniority-based time limits on supplemental pay if a worker is laid off. Supplemental pay makes up most of the difference between a worker's salary and unemployment benefits. The union already had agreed to suspend the "jobs bank" in which laid-off workers get most of their pay.

The union also agreed to take as equity 50 percent of the payments that Ford is required to make into a union-run trust fund that will take over retiree health care expenses starting next year. The company owes the fund roughly $13.2 billion on a $23.7 billion liability.

The summary states that the stock will come in small annual installments over a long period of time, and the UAW can sell it quickly to diversify its investments. There also are guarantees that if the stock price drops, the trust would get more shares so it gets the full company contribution required under the 2007 national contract with the union, the summary said.