Sunday, September 17, 2006
Ford to cut 10,000 salaried jobs, close more factories
There's nothing in this article or in recent announcements (that I've seen) about how these cutbacks will effect suppliers, stampers and others, of Ford, but these kinds of announcements are seldom good news for the suppliers.
EagleTribune.com
Ford Motor Co., increasingly desperate to stem billion-dollar losses, accelerated job cuts and plant closings and projected that its North American auto business would remain unprofitable until at least 2009.
The second-largest U.S. automaker said it will shed an additional 10,000 salaried jobs, finish cutting 30,000 North American factory jobs by 2008, four years sooner than planned, and offer buyouts to all hourly workers. Ford suspended its quarterly dividend for the first time since 1982. The shares plunged 12 percent, wiping out most of the gains for the year. The new cuts speed up steps announced by then-Chief Executive Officer William Clay Ford Jr. in January to 'retake the American roadway.'
They come on the heels of a surprise $1.44 billion first-half loss. Two weeks ago, Ford hired former Boeing Co. executive Alan Mulally, 61, to replace Bill Ford, architect of a previous failed restructuring in 2002.
'The market has changed so much and this company has lost so much market share that it needs radical surgery,' said John Casesa, managing director with Casesa Strategic Advisors in New York. 'And that's what this announcement is.
EagleTribune.com
Ford Motor Co., increasingly desperate to stem billion-dollar losses, accelerated job cuts and plant closings and projected that its North American auto business would remain unprofitable until at least 2009.
The second-largest U.S. automaker said it will shed an additional 10,000 salaried jobs, finish cutting 30,000 North American factory jobs by 2008, four years sooner than planned, and offer buyouts to all hourly workers. Ford suspended its quarterly dividend for the first time since 1982. The shares plunged 12 percent, wiping out most of the gains for the year. The new cuts speed up steps announced by then-Chief Executive Officer William Clay Ford Jr. in January to 'retake the American roadway.'
They come on the heels of a surprise $1.44 billion first-half loss. Two weeks ago, Ford hired former Boeing Co. executive Alan Mulally, 61, to replace Bill Ford, architect of a previous failed restructuring in 2002.
'The market has changed so much and this company has lost so much market share that it needs radical surgery,' said John Casesa, managing director with Casesa Strategic Advisors in New York. 'And that's what this announcement is.
