Originally published February 23 2006
Ford plans factory, employee cuts
by Mike Adams, the Health Ranger, NaturalNews Editor
Ford Motor Company, the second-largest automobile manufacturer in the United States, has announced plans to close 14 factories and cut up to 30,000 jobs -- almost a quarter of its North American workers -- over the next six years.
Ford Motor Co. yesterday detailed a sweeping restructuring plan that would shut 14 factories and eliminate as many as 30,000 jobs, or nearly a quarter of its North American workforce, over the next six years.
The announcement at Ford follows a major overhaul by General Motors Corp., which plans to cut 30,000 workers by 2008 and close all or part of 12 plants.
Overall, the U.S. auto industry has shed 200,000 jobs, or 15 percent of its workforce, in the past five years.
Despite years of comeback plans and reorganization blueprints, GM and Ford, the pillars of the U.S. auto industry, have decided they have no choice but to shrink their way back to profitability in the face of the unrelenting pressures of a global market.
Although Chrysler has had some success in turning around its business, auto experts today focus less on the Big Three and more on what some call the Big Six.
Mark Fields, the Ford executive vice president who is leading this turnaround effort, said competitors keep pouring new vehicles into the U.S. market, "a competitive shootout like we've never seen before."
There were 11 in 1993; 28 are expected to be operating this year, according to the Japan Automobile Manufacturers Association.
Although foreign companies employ less than a quarter of U.S. autoworkers, their growing presence looms large over the strategic decisions of both the corporate managers and the union officials at their U.S. rivals.
Additionally, Gettelfinger said Ford's announcement leaves a cloud over its workforce because the automaker did not identify all of the plants it plans to close as part of the announced reorganization.
The plan is to return Ford's North American auto operations to profitability no later than 2008, although Ford said the company will no longer offer analysts guidance about its annual financial results.
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