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Ford Slashing Jobs

Ford Slashing Up to 30,000 Jobs by 2012

Ford Motor Co., the nation's second-largest automaker, said Monday that it will cut 25,000 to 30,000 jobs and idle 14 facilities by 2012 as part of a restructuring designed to reverse a $1.6 billion loss last year in its North American operations.
Ref. https://news.yahoo.com/s/ap/20060123/ap_on_...d_restructuring

Jobs Slashing Ford

I feel bad for the workers who are losing their jobs and earnest way of making money. I don't feel bad for the company in general because they have enjoyed many profitable years, and took things for granted. Automobile manufacturers constitute a large number of lobbyists in the Houses of Congress and Senate, and this large cashflow into the lobbying business is now hurting overall profits, because car sales across the boards have declined recently. Maybe if they had used this money to concentrate on alternative-fuel cars and more efficient vehicles then their sales may not have plummeted as much, and they would not need to be cutting jobs at this time.

Ford Slashing Jobs History & Civil Business Politics

Actually, car sales haven't really declined all that much. We (GM) are selling more cars than ever. It is that profits are down.

As for the lost jobs - all of us have way, WAY too much capacity. All of the Big Three have long known that we need to close a lot of older plants. But the unions wouldn't let that happen. The health care burden has also been a major concern for all three companies.

Ford needs to cut back. So does GM. How they do it is more the question. GM is going to cut 30,000+ jobs in the next 5 years. However, we are doing it by not replacing people when they retire (something like 75% of the hourly workforce will be eligible to retire, with pension, within the next 5 years).

Jobs Slashing Ford

Nighthawk, you make a good point about the unions. How did they get around the unions in this recent slashing of jobs then? As for GM's policy, it seems they are taking the high ground and actually decided to pay out pensions, etc and not replace those who retire while Ford has taken the opposite direction. Will Ford still be responsible for the pensions of those that they let go who were looking at retirement in the near future?

Jobs Slashing Ford

Basically, they worked out the agreements with the unions before announcing the cuts. An awful lot of the Ford jobs will be salaried workers rather than hourly.

GM has now announced that they will cap pensions (no adjustments for inflation) and will also cap medical for retirees. That is for current retirees as well as employees.

I expect to see Ford follow suit on this soon.

Ford Slashing Jobs

Breaking News

Ford Motor Co. said Friday it plans to cut 14,000 salaried jobs and it will offer buyouts to all of its hourly workers as it attempts to restructure the company.
Ref. CBCNews