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 inCanada and the U.S. by 2012. As part of what Ford is calling its "WayForward Plan", the automaker is revamping its operations by cuttingapproximately 20 percent of its North American workforce. The ailingautomaker has watched its market share slip to a little more than 17percent of the overall U.S. market, compared with 25 percent 10 yearsago.
Here at home, the St. Thomas, Ontario, assembly plantwill be reduced from two shifts to one. The plant currently employs2,300 people and the move could potentially eliminate over 1,000 jobs.The factory builds the Grand Marquis and Crown Victoria, both whichhave been selling poorly lately but still are important vehicles forall-important fleet customers. Sales of the two cars fell 14 percentlast year in North American markets, from 154,843 in 2004 to 132,657 in2005. The St. Thomas plant is capable of producing about 240,000 carsper year, almost double of what is being sold. Ford maintains it iscommitted to an earlier promise to invest $200 million into the St.Thomas operation.
"I
share the anger and frustration of ourmembers in St. Thomas on the announcement that they're going to lose ashift sometime next year," said Buzz Hargrove, president of theCanadian Auto Workers. However Hargrove added that since the cutbackdoesn't happen until 2007 "that gives us a lot of time to talk."
Aspreviously announced, the closing of a casting plant in Windsor will goahead. Last fall, after talks between Ford and the CAW, it was madeknown that up to 1,100 jobs at the Windsor facility could be cut by2008.
Hargrove feels that U.S. and Canadian governments muststep up to help the automotive industry by addressing the automotiveimport and export restrictions. The CAW President says it is unfairthat millions of vehicles can be imported from
countries that will notallow North America to export to them due to trade restrictions.
"Wecould be hiring like the Japanese and the Koreans, instead of throwingpeople on the streets... one way trade is not free trade."
Onthe flip side, it's full speed ahead at Ford's Oakville plant, where abillion dollar makeover to flexible manufacturing will make it one ofthe stars of the Way Forward plan. In an earlier interview withCanadian Auto Press, Ford Canada President William Osborne said,"Oakville is an important staple to the Ford business model. It will bethe most flexible plant producing multiple (car) models."
Meanwhilein the United States, the closings will cut even deeper into Ford'sU.S. hourly employment of 82,000 workers, though the exact percentageis not yet known. Facilities slated for closure through 2008 includethe St. Louis assembly plant, the Atlanta assembly plant, the Wixomassembly plant and the Batavia transmission plant.
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 Canada and the U.S. by 2012. (Photo: Ford Motor Company of Canada) |
Here at home, the St. Thomas, Ontario, assembly plantwill be reduced from two shifts to one. The plant currently employs2,300 people and the move could potentially eliminate over 1,000 jobs.The factory builds the Grand Marquis and Crown Victoria, both whichhave been selling poorly lately but still are important vehicles forall-important fleet customers. Sales of the two cars fell 14 percentlast year in North American markets, from 154,843 in 2004 to 132,657 in2005. The St. Thomas plant is capable of producing about 240,000 carsper year, almost double of what is being sold. Ford maintains it iscommitted to an earlier promise to invest $200 million into the St.Thomas operation.
"I
 |
| Bill Ford Chairman and CEO (centre), 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 of Canada) |
Aspreviously announced, the closing of a casting plant in Windsor will goahead. Last fall, after talks between Ford and the CAW, it was madeknown that up to 1,100 jobs at the Windsor facility could be cut by2008.
Hargrove feels that U.S. and Canadian governments muststep up to help the automotive industry by addressing the automotiveimport and export restrictions. The CAW President says it is unfairthat millions of vehicles can be imported from
 |
| "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 of Canada) |
"Wecould be hiring like the Japanese and the Koreans, instead of throwingpeople on the streets... one way trade is not free trade."
Onthe flip side, it's full speed ahead at Ford's Oakville plant, where abillion dollar makeover to flexible manufacturing will make it one ofthe stars of the Way Forward plan. In an earlier interview withCanadian Auto Press, Ford Canada President William Osborne said,"Oakville is an important staple to the Ford business model. It will bethe most flexible plant producing multiple (car) models."
Meanwhilein the United States, the closings will cut even deeper into Ford'sU.S. hourly employment of 82,000 workers, though the exact percentageis not yet known. Facilities slated for closure through 2008 includethe St. Louis assembly plant, the Atlanta assembly plant, the Wixomassembly plant and the Batavia transmission plant.