Posted on 09/15/2006 5:16:26 AM PDT by Mikey_1962
Cuts include 14,000 white collar jobs, fourth-quarter dividend; North American operations likely not profitable before 2009; market share expected to be around 15 percent
DETROIT -- Ford Motor Co. said today it will cut its operating costs by $5 billion and cut its salaried work force by one-third, or about 14,000 positions, as it speeds up its Way Forward restructuring plan.
Ford also said it will not pay a stock dividend for the fourth quarter, and will sell or close all former Visteon plants by the end of 2008 and close other plants.
The automaker now acknowledges that it won't return its North American automotive unit to profitability by the end of 2008 as previously planned. Because of further expected market share declines, Ford now says that full-year profitability for the unit is not expected before 2009.
That unit lost $1.6 billion before taxes in 2005. It lost another $1.3 billion before taxes and one-time charges through the first half of this year.
Market share for the Ford, Lincoln and Mercury brands will continue to fall, Ford said today. The combined market share of the three brands already has dropped by 1.1 percentage points through August, to 16.8 percent of the U.S. market.
Ford said today that U.S. market share of those brands will be in the low 16 percent range by the end of this year. Ford expects share to further fall to the 14 to 15 percent range in the future.
Ford will idle its Norfolk, Va., assembly plant in 2007, a year earlier than planned. That plant builds F-150 pickups.
A shift reduction is now planned for the Norfolk plant and the St. Paul, Minn., plant that builds the Ford Ranger pickup.
(Excerpt) Read more at autonews.com ...
LOL! Haven't owned a Ford since 1981 and never will again.
Ford was on a pretty good roll, especially with their trucks, until Jaques Nasser (aka Jaque the Knife) assumed the honcho position. He was a guy that ruled thru terror and really killed morale - a lot of good people left. Billy Ford is a decent fellow but couldn't pull them out of their tailspin.
are they finally going to drop mercury?
Actually companies exist for the benefit of the country. That is until they become internationalists who don't give a damn about the welfare of the United States.
You had better be concerned about employees because it is from them that the unrests arises that destroys nations.
GM, on the other hand, seems hopelessly lost.
Well there's that car called the Mustang that's doing OK, but your correct. I support automotive manufacturing as well, but it's all Toyota and currently they are ramping up three new production lines in North America...
"The question is why do those on this board (not all but some) hate American Auto manufacturing and delight when people lose their jobs. Frankly it's sickening."
It is sickening. There are a few groups who cheer the loss of American jobs:
1 - Extreme capitalists. They view the world from the standpoint of "pure capitalism", (I'm not sure that exists). They have a very narrow view, a view that will one day bite them. They worry only about profits this quarter, and are the folks who are behind our current problems with corporations not innovating because R&D takes from quarterly profits. These folks aren't Americans first, they're capitalists first and foremost. They cling to the flag when they need Americans to die for their corporate interests.
2 - Business owners who have had employee troubles, (most business owners). These folks are disgusted by the unions. They don't care that the companies agreed to these deals, they just hate unions. So, anything that hurts a union, is good, in their eyes. Even if it requires one of the biggest American companies going down the tubes. If it hurts a union, it's good.
3 - Jealous people. Not all conservatives are wealthy. There are many who make less than union workers, and work harder. So, they too, hate unions. They delight in seeing the "prima donnas" get taken down.
What all of these "patriots" purposely ignore is that their countrymen are being put out of jobs. Also, that job losses at a manufacturer such as Ford are cascading, and that jobs will be lost at connected businesses. This will result in Americans losing many jobs, thus going on unemployment. This is all free, our taxes will not go up right? I know, not federal, they'll let the states do it. That way, the "conservatives" in states that aren't impacted won't see economic damage right away, and will continue to cheer. Also, these people who lose their jobs buy things. A lot of businesses will lose customer base. Our capitalist friends will scream then, because quaterly profits will be impacted.
Finally, republicans control the government, both houses, and the executive. Not all factory workers vote with the union, I know this for a fact. Not all will vote democrat because of losing their jobs, but more will. And it won't be restricted to the 70k laid off. It will be workers in related businesses, family and friends who will want to punish those in power.
Yeah, listen to them cheer, for now.
My father-in-law is a Ford (salaried) retiree and my brother-in-law is a current salaried employee. I pray his job is safe.
You need a soul.
Management will keep their jobs; dealers will not have to eat outstanding debt or overstocked SUVs; suppliers won't be stiffed.
Won't be any profit, but what the heck ~ Ford continues to have stockholders who think all this stuff protects their equity stake.
BTW, just before it went belly-up International Harvester hired an outsider without automotive experience.
"Companies are in business to MAKE A PROFIT."
From another post of mine:
Extreme capitalists... These folks aren't Americans first, they're capitalists first and foremost. They cling to the flag when they need Americans to die for their corporate interests.
Now I would ask, are coroporations entities that simply exist? Are there no people in these corporations? If there are people involved, are they Americans? Is there a pledge of allegience to your country? Why is it we don't pledge allegaince to the company? Those who elevate the company to a higher status than the country are very misguided and just as dangerous to America as the Marxist crowd.
That nugget comes from a reading of our history as well as that of other nations.
If ultimately the only purpose of a business is to make money, everthing else takes second place; a stable society, abiding by the law, continuation of our republic, an exemplar of freedom to the world.
There is no doubt that business must make a profit but business does not exist within a vacuum where the events of the world come second to the profit motive.
"Going down, the sooner the better"
Another "Great American". Can you enumerate the benefits that America will see when one of their larger manufacturers close their doors?
I think you raise a good point in your #3, however I might suggest it is resentment rather than jealousy because it is a largely protected class (unions) unlike small business owners who often work doggedly for a lot less. And oh, they create jobs rather than cost them.
ALL Organizations exist for the benefit of the individuals that make up the group...at least under freedom of association. That includes employees and shareholders.
If not, they will cease to exist.
Existing exclusively to sell stock (and not product) is what has gotten Ford and the rest of the US manufacturing in the state that it is in. ...with a buch of help from the IRS and Unions.
Those who support companies support the system of laws making companies possible. Those who support that system of laws support the country.
We don't have a dichotomy here; rather, it's a seamless garment of interconnected structure.
Ford's assets don't just evaporate in a bankruptcy. Rather, they will be assigned to new and more deserving owners and managers. The employees will see to it that their own discomfort is limited in duration and scope ~ however, I'd move out of Greater Detroit.
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