Ford plans white-collar layoffs

[Jim Wynne]

From the Associated Press via Google News:

DETROIT (AP) — Ford Motor Co. plans to conduct involuntary layoffs of salaried employees by August as part of a restructuring in the face of slumping sales and record-high gas prices, a spokeswoman said Wednesday.
Marcey Evans said the company hasn't yet determined how many white-collar jobs will be cut. But she said that unlike previous rounds of layoffs in recent years, employees won't be offered voluntary buyout packages with financial or early retirement incentives. Evans said the company wants the cuts completed by Aug. 1, which is not enough time to roll out voluntary offers and wait for employees to accept them.
"Given the speed that we're moving, we don't expect to conduct voluntary layoffs," she said.
The Detroit News reported Wednesday that some employees were told that Ford plans to cut its salaried work force by 10 to 12 percent, or more than 2,000. But Evans said Ford hasn't yet decided how many people will be cut.
Ford announced last Thursday that it was cutting North American production for the rest of this year and no longer expects to return to profitability by 2009 due to the rapidly deteriorating U.S. market. The company said it would release more details about its cost-cutting efforts in July.

Read the rest of the story (broken link removed).

 

[somerqc]

I would be shocked if Ford reached profitability by 2011! Why? I know of very few if ANY people that even consider Ford as a option for a vehicle. They will only reach profitability when they start to offer products that people want.

I live not too far from a large Ford plant (Oakville, Ontario and grew up in Windsor,Ontario to add insult to injury). Except for when I visit my hometown, I rarely see new Ford products on the road (except the Edge, which seems to be doing well).

My wife and I are currently in the market for a new car (darn minivan takes $80 to fill up nowadays!). We haven't even been on Ford's website (or Chrysler for that matter). Why? They don't offer products that we want and/or like.

One of golden rules will always apply - you have to offer products that your customer wants - otherwise - you will lose those products. It seems that the North American automakers have forgotten this.



John

 

[AndyN]

John:

Totally agree! Ford are actually looking at bringing in European products (Ford Focus based) to meet the demand for smaller, more fuel efficient vehicles. GM already are doing this with the Saturn Astra, new Vue, etc. And they are better built, better finished than domestic products.

Chrysler have a bigger challenge just to rationalize its line up. No body is fooled that the 'All-Jeep Liberty" isn't a rebadged Nitro! They make way too many version of the same - not too exciting - vehicles. And the build quality/finish just isn't there.

Paradoxically, GM may be the only (domestic) car maker to really survive the next few years....

 

[somerqc]

I will admit (with much shock) that GM has done a wonderful job of desiging and producing good/high quality vehicles in the last few years. Unfortunately, it will take at least a decade to get rid of the bad taste of the 90's and early 2000's created.

For Ford and Chrysler, I don't see either of them turning the corner.

Ford is rebadging products from Europe (and Japan). Another example, the Ford Focus is actually based on the Mazda 2 (forget the actual name) from Europe. In addition, the Edge is what the CX-5 would have been if it ever hit the NA market (doesn't look like it now). The jury is still out if this strategy will work, but at least it is a good attempt at trying to catch up to the NA market needs.

John