Most of the changes, however, won't be felt in the near future. Some of the cuts are scheduled to come in effect six years from now.
The United Auto Workers Union has a contract with the carmaker requiring laid-off workers to be paid nearly in full, thus forcing Ford to offer buyout packages.
As reported on CNN, Don Leclair, Ford's Chief Financial Officer, said about half the cuts would likely be accomplished through normal retirement and attrition, while half will be accomplished through "inducements."
The UAW President says the wrong people are being affected. "The restructuring plan announced this morning by Ford is extremely disappointing and devastating news for the many thousands of hard-working men and women who have devoted their working lives to Ford. The impacted hourly and salaried workers find themselves facing uncertain futures because of senior management's failure to halt Ford's sliding market share."
Meanwhile north of the border, Ford announced that the Crown Victoria, Grand Marquis assembly plant in St. Thomas, Ontario will be cutting the number of its shifts in half, costing about 1,200 jobs. While announced earlier, a casting plant in Windsor, Ontario will nevertheless be shutting its doors as well, causing job losses of up to 1,100 workers.
Canadian Auto Workers (CAW) President Buzz Hargrove says his organization will be meeting with the UAW to see that both the U.S. and Canadian
governments step up and help the automotive industry by addressing the automotive import and export restrictions. Hargrove argues that it is unfair that millions of vehicles can be imported from countries that will not allow us to export to them or at the very least have trade restrictions.
"We could be hiring like the Japanese and the Koreans, instead of throwing people on the streets... one way trade is not free trade," Hargrove said.
Meanwhile some analysts are stating that Ford's plan is too little, too late. As reported by ABC News' Peter Morici, an economist at the University of Maryland stated, "I don't believe that Mr. Ford knows how to resurrect his great-grandfather's company." Meanwhile, others say the plan doesn't address the automaker's biggest problems, like the skyrocketing cost of health care and pensions.
Earlier Monday, Ford announced a 2 billion dollar profit, which was down 42 percent from a year earlier. Ford managed to fare better than some expected because of the success of its finance arm and the sale of its Hertz Corp. rental car unit. Its vehicle division, mind you, was not profitable.
Ford is considering closing two additional plants as well, but for the time being has not announced which ones may be getting the axe.
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| Mark Fields, Executive vice president Ford Motor Company and President of the Americas, and the ex-Mazda turnaround man most expect big things from, addresses employees, media and members of the investment community about the company's "Way Forward" plan for North America. (Photo: Ford Motor Company) |
As reported on CNN, Don Leclair, Ford's Chief Financial Officer, said about half the cuts would likely be accomplished through normal retirement and attrition, while half will be accomplished through "inducements."
The UAW President says the wrong people are being affected. "The restructuring plan announced this morning by Ford is extremely disappointing and devastating news for the many thousands of hard-working men and women who have devoted their working lives to Ford. The impacted hourly and salaried workers find themselves facing uncertain futures because of senior management's failure to halt Ford's sliding market share."
Meanwhile north of the border, Ford announced that the Crown Victoria, Grand Marquis assembly plant in St. Thomas, Ontario will be cutting the number of its shifts in half, costing about 1,200 jobs. While announced earlier, a casting plant in Windsor, Ontario will nevertheless be shutting its doors as well, causing job losses of up to 1,100 workers.
Canadian Auto Workers (CAW) President Buzz Hargrove says his organization will be meeting with the UAW to see that both the U.S. and Canadian
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| Jim Padilla, President and Chief Operation Officer, Ford Motor Company, made his remarks during the announcement as well. (Photo: Ford Motor Company) |
"We could be hiring like the Japanese and the Koreans, instead of throwing people on the streets... one way trade is not free trade," Hargrove said.
Meanwhile some analysts are stating that Ford's plan is too little, too late. As reported by ABC News' Peter Morici, an economist at the University of Maryland stated, "I don't believe that Mr. Ford knows how to resurrect his great-grandfather's company." Meanwhile, others say the plan doesn't address the automaker's biggest problems, like the skyrocketing cost of health care and pensions.
Earlier Monday, Ford announced a 2 billion dollar profit, which was down 42 percent from a year earlier. Ford managed to fare better than some expected because of the success of its finance arm and the sale of its Hertz Corp. rental car unit. Its vehicle division, mind you, was not profitable.
Ford is considering closing two additional plants as well, but for the time being has not announced which ones may be getting the axe.