Way Forward Plan is Necessary According to CEO Bill Ford
Aswas highly anticipated, Ford Motor Co. announced Monday that it isclosing 14 North American plants, and cutting up to 30,000
jobs in the U.S. and Canada by 2012. As part of what Ford is calling its "Way Forward Plan", the automaker is revamping its operations by cutting approximately 20 percent of its North American workforce. The ailing automaker has watched its U.S. market share slip to a little more than 17 percent compared with 25 percent 10 years ago. The closings will slice deeply into the ranks of Ford's hourly employment ranks, currently numbering 82,000, although the exact percentage is not yet known.
Facilities slated for closure through 2008 include the St. Louis assembly plant, the Atlanta assembly plant, and the Wixom assembly plant. The St. Louis factory produces the recently updated Ford Explorer and Mercury Mountaineer, but sales of truck-based SUVs took a major downturn in 2005. The Altanta plant makes the soon to be phased out Ford Taurus Sedan. The Wixom plant fabricates the Lincoln Town Car, which has been slumping in sales, and the Ford Thunderbird which is being discontinued.
In a news conference from Dearborn Michigan, CEO Bill ford said, "These cuts are a painful last resort and I am deeply mindful of their impact. They are going to affect many lives, many families and many communities, and we will do everything we reasonably can to ease the burdens."
Facilities slated for closure through 2008 include
the St. Louis assembly plant, the Atlanta assembly plant, and the Wixom assembly plant. The St. Louis factory produces the recently updated Ford Explorer and Mercury Mountaineer, but sales of truck-based SUVs took a major downturn in 2005. The Altanta plant makes the soon to be phased out Ford Taurus Sedan. The Wixom plant fabricates the Lincoln Town Car, which has been slumping in sales, and the Ford Thunderbird which is being discontinued.
In a news conference from Dearborn Michigan, CEO Bill ford said, "These cuts are a painful last resort and I am deeply mindful of their impact. They are going to affect many lives, many families and many communities, and we will do everything we reasonably can to ease the burdens."
The second largest U.S. automaker also announced it is cutting white collar jobs. Ford is reducing its salaried workforce by ten percent and states that twelve percent of its executives will also be losing their jobs by the end of the first quarter.
UAW President Ron Gettelfinger issued a statement saying it was a dark day, adding "The announcement has further left a cloud hanging over the entire work force because of pending future announcements of additional facilities to be closed at some point in the future." He continued, "Certainly, today's announcement will only make the 2007 negotiations all the more difficult and all the more important."
Since the automaker had announced that cuts were coming, many states have been trying to offer incentives to keep Ford from closing plants in their districts. Missouri Gov. Matt Blunt had met with Ford executives to discuss a strategy. Last week, Michigan Gov. Jennifer Granholm provided Ford brass with a package of incentives, but wasn't assured that the plants in her state would be spared.
Bill Ford said that the cuts were needed. "By taking the actions we are today, in the long run, we will create far more stable and secure jobs. We all have to change, and we all have to sacrifice, but I believe this is the path to winning."
Aswas highly anticipated, Ford Motor Co. announced Monday that it isclosing 14 North American plants, and cutting up to 30,000
 |
| Ford Motor Co. announced Monday that it is closing 14 North American plants, and cutting up to 30,000 jobs in the U.S. and Canada by 2012. (Photo: Ford Motor Company) |
Facilities slated for closure through 2008 include the St. Louis assembly plant, the Atlanta assembly plant, and the Wixom assembly plant. The St. Louis factory produces the recently updated Ford Explorer and Mercury Mountaineer, but sales of truck-based SUVs took a major downturn in 2005. The Altanta plant makes the soon to be phased out Ford Taurus Sedan. The Wixom plant fabricates the Lincoln Town Car, which has been slumping in sales, and the Ford Thunderbird which is being discontinued.
In a news conference from Dearborn Michigan, CEO Bill ford said, "These cuts are a painful last resort and I am deeply mindful of their impact. They are going to affect many lives, many families and many communities, and we will do everything we reasonably can to ease the burdens."
Facilities slated for closure through 2008 include
 |
| Bill Ford Chairman and CEO (center), Mark Fields (left) Executive vice president and President of the Americas and Jim Padilla, President and Chief Operating Officer Ford Motor Company, take questions from media about the company's "Way Forward" plan. (Photo: Ford Motor Company) |
In a news conference from Dearborn Michigan, CEO Bill ford said, "These cuts are a painful last resort and I am deeply mindful of their impact. They are going to affect many lives, many families and many communities, and we will do everything we reasonably can to ease the burdens."
The second largest U.S. automaker also announced it is cutting white collar jobs. Ford is reducing its salaried workforce by ten percent and states that twelve percent of its executives will also be losing their jobs by the end of the first quarter.
 |
| "These cuts are a painful last resort and I am deeply mindful of their impact. They are going to affect many lives, many families and many communities, and we will do everything we reasonably can to ease the burdens," said CEO Bill Ford. (Photo: Ford Motor Company) |
UAW President Ron Gettelfinger issued a statement saying it was a dark day, adding "The announcement has further left a cloud hanging over the entire work force because of pending future announcements of additional facilities to be closed at some point in the future." He continued, "Certainly, today's announcement will only make the 2007 negotiations all the more difficult and all the more important."
Since the automaker had announced that cuts were coming, many states have been trying to offer incentives to keep Ford from closing plants in their districts. Missouri Gov. Matt Blunt had met with Ford executives to discuss a strategy. Last week, Michigan Gov. Jennifer Granholm provided Ford brass with a package of incentives, but wasn't assured that the plants in her state would be spared.
Bill Ford said that the cuts were needed. "By taking the actions we are today, in the long run, we will create far more stable and secure jobs. We all have to change, and we all have to sacrifice, but I believe this is the path to winning."