PDA

View Full Version : Ford Offers Buyouts to All Union Workers



Captain KRM P5
09-14-2006, 03:13 PM
DETROIT - Ford Motor Co. and the United Auto Workers union are planning to offer buyouts to all the company’s 75,000 U.S. workers, the Wall Street Journal reported on its Web site today.Ford Motor Co., the nation's troubled No. 2 automaker, will announce a long-anticipated restructuring plan Friday, the company announced Thursday.
The plan, which is expected to include more plant closings and employee layoffs, will be detailed in a statement scheduled to be released at 7 a.m. EDT, the company said. Executives will offer more details in presentations to the media and employees beginning at 9 a.m.

(http://www.msnbc.msn.com/id/14831365/#storyContinued)<hr noshade="noshade" size="1"> <hr noshade="noshade" size="1">

Ford executives are estimating the company could lose up to $9 billion this year including the costs of the restructuring plan, a newspaper reported Thursday.
The Detroit News reported that chief financial officer Don Leclair’s office has said in a financial forecast report that Ford’s global automotive operations will post a pretax loss of $5.6 billion to $5.9 billion this year.
Once restructuring costs are factored in, the loss could widen to $9 billion, the newspaper said, citing a senior Ford official who it said had firsthand knowledge of the report. The report said most of the loss would come from Ford’s North American operations, the newspaper said.
Ford sales have suffered in North America as the auto market shifts away from trucks and truck-based sport utility vehicles and toward more fuel-efficient models often made by Asian automakers.
Ford announced in January that it would cut up to 30,000 jobs and close 14 facilities by 2012, but company officials said they are working on a plan to speed up the restructuring. Ford's board of directors has been meeting this week to approve the latest details of the plan, known as the "Way Forward."
Ford recently hired Alan Mulally, a former Boeing executive, as its new CEO, replacing Bill Ford Jr., the great-grandson of the company founder, who remains executive chairman of the company.
Company spokeswoman Becky Sanch said Ford would not discuss the report: “Those aren’t numbers that we shared, and we’re not commenting,” she told The Associated Press on Thursday.
The report comes as Ford’s board of directors was to meet for a second day Thursday to discuss another round of restructuring that likely is to include more plant closures and job cuts.
Ford lost $1.4 billion during the first half of the year and is under pressure from Wall Street to make further cuts and roll out new cars and trucks more quickly.
Separately, a report in Thursday’s Detroit Free Press says Ford executive Anne Stevens, one of the architects of the initial “Way Forward” restructuring plan and the highest-ranking woman in the automotive industry will step down.

<script></script><table class="boxH_brl" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="boxHC_brl" nowrap="true" width="*">

</td></tr></tbody></table><table class="boxB_brl" cellpadding="0" cellspacing="0" width="100%"><tbody><tr valign="top"><td class="boxBI_brl">
</td></tr></tbody></table>
Stevens has worked at Ford since 1990, and her plan to leave the ailing automaker is one of several crucial pieces in play as a revised rescue mission gets underway for the 103-year-old automaker, the newspaper reported.
In July, the company pledged to accelerate its “Way Forward” restructuring plan, which when introduced in January called for cutting up to 30,000 jobs and closing 14 facilities by 2012.

seanmcsean
09-14-2006, 03:23 PM
wow... that is going to piss off a lot of people.. wow.

dbzeag
09-15-2006, 06:30 AM
I guess they are taking after the highly successful GM model of doing business because look at the positive turn around GM made.

GoProtege
09-15-2006, 07:02 AM
I guess they are taking after the highly successful GM model of doing business because look at the positive turn around GM made.
Ford has been having big problems the last few years. This is thier third try at restructring since 01
Like dbzeag said, they are following the GM model because it proved to be successful quickly. I heard that the average age of the Ford workers is 5 years less then at GM, so it will cost Ford alot more money to persuade people to take early retirement.
I also heard that Ford is thinking about selling their Credit division.
Ford is a big topic on CNBC lately and from what it sounds like, if they don't get things turned around soon, Ford could be in serious trouble.

dbzeag
09-15-2006, 09:12 AM
Ford has been having big problems the last few years. This is thier third try at restructring since 01
Like dbzeag said, they are following the GM model because it proved to be successful quickly. I heard that the average age of the Ford workers is 5 years less then at GM, so it will cost Ford alot more money to persuade people to take early retirement.
I also heard that Ford is thinking about selling their Credit division.
Ford is a big topic on CNBC lately and from what it sounds like, if they don't get things turned around soon, Ford could be in serious trouble.
I was saying that in sarcasm because it hasn't worked for GM. they are still in the same boat, they have just delayed demise for a little while longer, that's all.

Donas64
09-15-2006, 09:16 AM
This is not good....

SciFiMan
09-15-2006, 09:20 AM
I heard on NPR this morning that some workers that have the longest service in, will be getting $140,000 buyout. If they have a lot of those, it's going to be a awfully large one-time charge on the balance sheet. But what can they do- closing all those plants, they'll have to get rid of the workers too. I suspect that in the future they'll be more careful when negotiating with the unions.

GoProtege
09-15-2006, 05:57 PM
was saying that in sarcasm because it hasn't worked for GM. they are still in the same boat, they have just delayed demise for a little while longer, that's all.

I've heard alot of people say that the GM turn around has been successful. But I think you have a good point, it is probably successful in the sense of it being a short term band aid solution. It probably does not affect in of the long term issues.
But I don't pretend to be an economic expert so I excuse me if I sound like an idiot. :)