Ford Likely To Close 5 North American Plants
12-02-2005, 04:56 PM
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Ford Likely To Close 5 North American Plants
DETROIT — Ford Motor Co. is likely to close five North American plants as part of a restructuring plan to be announced next month, according to a newspaper report published Friday.
But Buzz Hargrove, president of the Canadian Auto Workers, says the engine-parts plant in Windsor, Ont., should not be among those getting the axe.
Based on recent bargaining, “I'm pretty confident that we should escape this latest action by the Ford Motor Co.,” Mr. Hargrove said Friday in Toronto.
While the plan is still being formulated and is subject to change, the Wall Street Journal said North America's second-biggest auto maker is likely to close U.S. assembly plants in St. Louis, Atlanta and St. Paul, Minn. It cited two unidentified people familiar with the automaker's product plans.
The newspaper said the plant in Windsor and a truck-assembly plant in Cuautitlan, Mexico, are also slated for closure.
Together, the plants employ about 7,500 workers, or six per cent of Ford's North American work force.
“Obviously, we've indicated we will address our excess capacity,” Ford spokesman Oscar Suris said. “We've been pretty consistent in saying we'll share these plans in more detail in January. Nothing is finalized.”
The report comes a day after Ford said sales of its Ford, Lincoln and Mercury brands fell 18 per cent in November, and it said it would produce 2.5 per cent fewer vehicles in North America in the first quarter than it did last year.
Ford chairman-CEO Bill Ford has said he plans to announce U.S. plant closings and layoffs in January.
The January restructuring plan will be the latest in a series of shake-ups and cost-cutting moves at the Dearborn-based auto maker, which reported a third-quarter loss of $284-million (U.S.). In North America, it lost $1.2-billion before taxes.
When the company announced the third-quarter results in October, Bill Ford said he planned to complete the restructuring plan in December and announce it in January.
Ford and other U.S. auto makers have been hurt by competition from Asia as well as high health care and materials costs and bloated plant capacity.
On Thursday, Ford said its car sales slid six per cent despite strong demand for the company's new Ford Fusion, Mercury Milan and Lincoln Zephyr sedans and a 46 per cent increase in sales of the Ford Freestyle crossover.
Sales of Ford trucks and sport utility vehicles slipped 22 per cent, led by a 52 per cent decline in sales of the newly redesigned Ford Explorer SUV.
Ford also said it plans to build 850,000 vehicles in North America in the first quarter, down 2.5 per cent from a year ago. Ford said it will be increasing car production and lowering its output of trucks and SUVs.
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But Buzz Hargrove, president of the Canadian Auto Workers, says the engine-parts plant in Windsor, Ont., should not be among those getting the axe.
Based on recent bargaining, “I'm pretty confident that we should escape this latest action by the Ford Motor Co.,” Mr. Hargrove said Friday in Toronto.
While the plan is still being formulated and is subject to change, the Wall Street Journal said North America's second-biggest auto maker is likely to close U.S. assembly plants in St. Louis, Atlanta and St. Paul, Minn. It cited two unidentified people familiar with the automaker's product plans.
The newspaper said the plant in Windsor and a truck-assembly plant in Cuautitlan, Mexico, are also slated for closure.
Together, the plants employ about 7,500 workers, or six per cent of Ford's North American work force.
“Obviously, we've indicated we will address our excess capacity,” Ford spokesman Oscar Suris said. “We've been pretty consistent in saying we'll share these plans in more detail in January. Nothing is finalized.”
The report comes a day after Ford said sales of its Ford, Lincoln and Mercury brands fell 18 per cent in November, and it said it would produce 2.5 per cent fewer vehicles in North America in the first quarter than it did last year.
Ford chairman-CEO Bill Ford has said he plans to announce U.S. plant closings and layoffs in January.
The January restructuring plan will be the latest in a series of shake-ups and cost-cutting moves at the Dearborn-based auto maker, which reported a third-quarter loss of $284-million (U.S.). In North America, it lost $1.2-billion before taxes.
When the company announced the third-quarter results in October, Bill Ford said he planned to complete the restructuring plan in December and announce it in January.
Ford and other U.S. auto makers have been hurt by competition from Asia as well as high health care and materials costs and bloated plant capacity.
On Thursday, Ford said its car sales slid six per cent despite strong demand for the company's new Ford Fusion, Mercury Milan and Lincoln Zephyr sedans and a 46 per cent increase in sales of the Ford Freestyle crossover.
Sales of Ford trucks and sport utility vehicles slipped 22 per cent, led by a 52 per cent decline in sales of the newly redesigned Ford Explorer SUV.
Ford also said it plans to build 850,000 vehicles in North America in the first quarter, down 2.5 per cent from a year ago. Ford said it will be increasing car production and lowering its output of trucks and SUVs.
http://ctv2.theglobeandmail.com/serv...N/ctv-business
12-03-2005, 03:58 PM
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Originally Posted by CMOC Admin
But Buzz Hargrove, president of the Canadian Auto Workers, says the engine-parts plant in Windsor, Ont., should not be among those getting the axe.
Based on recent bargaining, “I'm pretty confident that we should escape this latest action by the Ford Motor Co.,” Mr. Hargrove said Friday in Toronto.
Based on recent bargaining, “I'm pretty confident that we should escape this latest action by the Ford Motor Co.,” Mr. Hargrove said Friday in Toronto.
NEW YORK -- Ford Motor Co. is likely to close five plants that employ about 7,500 workers, or about 6 percent of the company's North American workforce, the Wall Street Journal reported on Friday.
Citing two people familiar with Ford's product plans, the newspaper said the company was likely to shut assembly plants in St. Louis, Atlanta and St. Paul, Minn., as well as an engine-parts plant in Windsor, Ontario, and a truck-assembly plant in Cuautitlan, Mexico.
The plans to shut the plants were still being formulated and were subject to change, the newspaper added.
Ford, facing a deepening financial crisis, has promised to unveil a radical restructuring in North America early next year.
The company lost $284 million in the third quarter. On Thursday, Dec. 1, it said sales fell for a third straight month, down 15 percent, and cut its production forecasts for the fourth and first quarters.
In November, the company announced plans to eliminate 4,000 salaried jobs, or 10 percent of its North American white-collar work force, as part of the larger restructuring plan.
Citing two people familiar with Ford's product plans, the newspaper said the company was likely to shut assembly plants in St. Louis, Atlanta and St. Paul, Minn., as well as an engine-parts plant in Windsor, Ontario, and a truck-assembly plant in Cuautitlan, Mexico.
The plans to shut the plants were still being formulated and were subject to change, the newspaper added.
Ford, facing a deepening financial crisis, has promised to unveil a radical restructuring in North America early next year.
The company lost $284 million in the third quarter. On Thursday, Dec. 1, it said sales fell for a third straight month, down 15 percent, and cut its production forecasts for the fourth and first quarters.
In November, the company announced plans to eliminate 4,000 salaried jobs, or 10 percent of its North American white-collar work force, as part of the larger restructuring plan.
12-07-2005, 04:56 PM
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The news gets worse....
Ford plans to cut 30,000: report
Canadian Press
[img][/img]
DETROIT — Ford Motor Co. executives have drafted a plan to close at least 10 North American factories and eliminate 25,000 to 30,000 blue-collar jobs within five years, the Detroit News reported Wednesday.
The paper said the plan, set to be presented to the company's board of directors, envisages cuts deeper than many observers had expected.
Chief executive Bill Ford has said changes expected to be announced Jan. 23 will affect all levels of the company.
The Detroit News cited sources as saying up to seven senior executives will leave the auto maker in the coming weeks.
It said that in board meetings Wednesday and Thursday, Mark Fields, new president of Ford's Americas division and architect of the so-called “Way Forward” plan, will present a detailed restructuring proposal, along with a blueprint for revitalizing the Ford, Mercury and Lincoln brands by attracting younger buyers.
Ford did not comment publicly on its plans.
“Our work continues,” spokesman Oscar Suris told the newspaper.
“These plans will be final when they're ready to be shared publicly.”
Canadian Press
[img][/img]
DETROIT — Ford Motor Co. executives have drafted a plan to close at least 10 North American factories and eliminate 25,000 to 30,000 blue-collar jobs within five years, the Detroit News reported Wednesday.
The paper said the plan, set to be presented to the company's board of directors, envisages cuts deeper than many observers had expected.
Chief executive Bill Ford has said changes expected to be announced Jan. 23 will affect all levels of the company.
The Detroit News cited sources as saying up to seven senior executives will leave the auto maker in the coming weeks.
It said that in board meetings Wednesday and Thursday, Mark Fields, new president of Ford's Americas division and architect of the so-called “Way Forward” plan, will present a detailed restructuring proposal, along with a blueprint for revitalizing the Ford, Mercury and Lincoln brands by attracting younger buyers.
Ford did not comment publicly on its plans.
“Our work continues,” spokesman Oscar Suris told the newspaper.
“These plans will be final when they're ready to be shared publicly.”
