Ivy Tied Up |

Ford Cutting 25,000-30,000 Jobs
Reported by Scott Lawrence
January 23, 2006 - 10:21AM

DEARBORN, Mich. (AP) _ 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.

The cuts represent 20 percent to 25 percent of Ford’s North American work force of 122,000 people. Ford has approximately 87,000 hourly workers and 35,000 salaried workers in the region.

Ford shares rose 68 cents, or 8.6 percent, to $8.58 in morning trading on the New York Stock Exchange.

Earlier Monday, Ford reported earnings of $2 billion in 2005, down 42 percent from last year’s profit of $3.5 billion. It was the third straight year the automaker has reported a profit, but gains in Europe, Asia and elsewhere were offset by a loss of $1.6 billion in North American operations.

Plants to be idled through 2008 include the St. Louis, Atlanta and Michigan’s Wixom assembly plants and Batavia Transmission in Ohio. Windsor Casting in Ontario also will be idled, as was previously announced following contract negotiations with the Canadian Auto Workers. Another two assembly plants to be idled will be determined later this year, the company said.

The other seven facilities that will be idled were not immediately identified.

A total of 14 facilities, including seven assembly plants, will cease production by 2012, Ford said.

“We will be making painful sacrifices to protect Ford’s heritage and secure our future,” Chairman and Chief Executive Bill Ford said in a statement. “Going forward, we will be able to deliver more innovative products, better returns for our shareholders and stability in the communities where we operate.”

The No. 2 U.S. automaker after General Motors Corp. has been hurt by falling sales of its profitable sport utility vehicles, growing health care and materials costs and labor contracts that have limited its ability to close plants and cut jobs. The United Auto Workers union will have to agree to some of the changes Ford wants to make.

On the Net:

Ford Motor Co.: http://www.ford.com

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This isnt going to be just a few jobs lost. Thats a lot of jobs lost! This is going to hurt those families. I’d like to thinkt hat the reason Ford’s sales are down is because of gas costs going up and more people going to a “less gass guzzling, more affordable” vehicle. It could be Ford’s history of having big recalls and the fact that when your vehicle hits a certain mileage the dash lights all come on and you have to take it in just to have them turned off. Then you are charged for that. When there is nothing wrong with your vehicle. It could be that everything that goes wrong with it is never under warranty. And the fact that ford is getting worse and worse about that. Not to mention the new body styles of the trucks (which they have been known for (atleast here in Texas) just really suck. Such a poor word out of my vocabulary but there isnt another word that fits right there..

I grew up in a Ford only family. And what i’ve stated seems to be true. My husbands family was also Ford only. My grandfather was a ford salesman. And it seems to be the truth.
The first vehicle my husband and I bought that was brand new.. A ford f150 super crew cab.. WAY more trouble than what it was worth. Everytime something went wrong it was never under the manufacturers warranty. It always just fell slightly out of the grasp of the warranty. We were sent several recall notices. They were suppose to change the parts for free. BUT they didnt have a new working part ready for the last recall. The recall notice said to bring the truck in and they would turn the feature OFF since they hadnt come out with a correction to the problem. How lovely is that? quality craftsman ship? No.. It once was.. At one point it seemed you could go forever and not have a problem with your ford pick up truck Now days.. You are in the shop frequently. Atleast this is my experience and those I have spoken to..

I feel for those who will lose their jobs. I feel for their families. Thats alot of workers out of work. yes its over the next few years to come but even then.. Knowing your job could be gone. UGH! Not to mention how long do you think some of them have been there? ALONG time i imagine..