Ford: Sales, Marketing, and Financial News
09-08-2006, 03:54 PM
#202
Originally Posted by CGTSX2004
Considering Ford's condition, that's way too much money to be offering. Executive compensation is just ridiculous...
09-08-2006, 03:56 PM
#203
Originally Posted by invincible569
but what if he makes ford very profitable? You have to get a great leader.
09-08-2006, 05:23 PM
#204
The sizzle in the Steak
Originally Posted by CGTSX2004
Considering Ford's condition, that's way too much money to be offering. Executive compensation is just ridiculous...
09-08-2006, 05:24 PM
#205
The sizzle in the Steak
Originally Posted by CGTSX2004
Pay him based on performance. If he really does make a difference, he'll get a chance to make a lot of money. If he continues to allow Ford to languish, he's not doing his job and won't get paid as much.
You gotta pay to play...so to speak.
09-08-2006, 05:32 PM
#207
The sizzle in the Steak
Originally Posted by jlukja
He looks to be roughly, what, 170-180lb?
Perhaps he is worth his weight in rare diamonds
09-08-2006, 05:53 PM
#208
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Originally Posted by CGTSX2004
Considering Ford's condition, that's way too much money to be offering. Executive compensation is just ridiculous...This is one of the best moves Ford could have made and his salary is nothing compared to the potential upside bringing in bright new leadership to the sinking ship.
09-08-2006, 05:57 PM
#209
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Originally Posted by CGTSX2004
Pay him based on performance. If he really does make a difference, he'll get a chance to make a lot of money. If he continues to allow Ford to languish, he's not doing his job and won't get paid as much.
Why some of us not care when sports stars get paid many more millions, but Alan's salary gets scrutiny? He turned around Boeing's corporate aircraft business and made many billions for shareholders in recent years and created thousands of jobs.
09-08-2006, 06:12 PM
#210
Moderator Alumnus
Originally Posted by CGTSX2004
Considering Ford's condition, that's way too much money to be offering. Executive compensation is just ridiculous...The average NBA player is paid $5 million per year to play 80-90 games of basketball. That to me is far more ridiculous than paying a highly regarded exec $20 million to run and more importantly turn-around one of the largest companies in the world. And of that $20 million, more than half is to make up for money he left on the table when he left Boeing.
09-08-2006, 08:24 PM
#211
Originally Posted by Silver™
The average NBA player is paid $5 million per year to play 80-90 games of basketball. That to me is far more ridiculous than paying a highly regarded exec $20 million to run and more importantly turn-around one of the largest companies in the world. .
cusdaddy is on the money. This is exactly what I am talking about. CEO's are paid to make highly executive decisions. And thats it! You can do it yourself by becoming self employed and you would understand. Owners of companies hire CEO's all the time to make them money. The CEO gets a salary, while the owners makes all the profit.
09-08-2006, 08:42 PM
#212
Suzuka Master
Originally Posted by Moog-Type-S
A good CEO is worth his weight in gold.
Originally Posted by Silver™
The average NBA player is paid $5 million per year to play 80-90 games of basketball. That to me is far more ridiculous than paying a highly regarded exec $20 million to run and more importantly turn-around one of the largest companies in the world. And of that $20 million, more than half is to make up for money he left on the table when he left Boeing.
Last edited by SpeedyV6; 09-08-2006 at 08:44 PM.
09-09-2006, 01:40 AM
#215
The sizzle in the Steak
Originally Posted by SpeedyV6
This may be more than his weight in gold.
I know. Next time i'll read thru all the posts before responding to the first one that got my attention.
09-11-2006, 07:42 AM
#217
Suzuka Master
"Ford said to eye new job cuts"
September 11 2006: 6:59 AM EDT
NEW YORK (CNNMoney.com) -- Ford Motor Co. could announce a new round of salaried job cuts as soon as Friday, according to a published report.
The Detroit News reported Monday that Ford (Charts) will start by offering voluntary buyout packages and early-retirement incentives to white-collar workers.
While the nation's No. 2 automaker expects to achieve headcount reduction targets through voluntary programs, involuntary layoffs are likely to follow in some areas if too few workers take advantage of the incentives, according to the report.
Ford, which has between 35,000 and 40,000 U.S. salaried employees, announced earlier this year that it was trimming 4,000 salaried positions as it tries to stem losses in its core North American auto operations.
Ford spokeswoman Marcey Evans would not discuss Ford's plans.
"We don't comment on speculation, nor do we comment on any business that we're taking before the board," she told the News.
The Ford board is set to meet Wednesday and Thursday. The company is expected to announce further steps in its turnaround plan originally announced in February, when it said it would cut 30,000 hourly positions and close 14 plants by 2014.
Wall Street is looking for the company to speed up those plant closings and hourly staff cuts, perhaps following the lead of General Motors (Charts), and offering all the union-represented employees retirement incentives or severance packages to leave the company sooner rather than later.
"Ford has 87,000 hourly workers. If 86,000 were to leave, the market would be ecstatic," Bradley Rubin, an analyst with BNP Paribas, told the paper.
Gephardt working with Ford unions, execs
The News also reported that former Democratic congressman and presidential candidate Richard Gephardt, a long-time ally of labor unions, has become a key behind-the-scenes player in Ford's efforts to trim its costs.
The paper said Gephardt will serve as a special adviser and consultant to Ford through next summer's contract negotiations with the United Auto Workers.
Gephardt told the paper he is working with Ford to find creative solutions to its labor costs issues.
"We're trying to use some innovative ideas to try to square the circle," he said.
The paper reported that Gephardt also helped recruit Boeing Co. (Charts) executive Alan Mulally to become the new CEO of Ford, a position he was named to last week.
The paper said that in 2005, soon after Gephardt left office, Mulally hired him to help with Boeing's tricky labor negotiations with the machinists union in the summer of 2005. In September 2005, Boeing reached a deal to end a month-old strike by the International Association of Machinists, as Mulally and IAM President Tom Buffenbarger worked out a deal in talks attended by Gephardt.
Earlier in 2005, Gephardt helped investors buying Boeing plants in Wichita, Kan., and Tulsa, Okla., secure a labor deal with the airplane maker's machinists' union. He now serves as a director of the company formed after that purchase, Spirit AeroSystems Holdings.
http://money.cnn.com/2006/09/11/news...ion=2006091106
NEW YORK (CNNMoney.com) -- Ford Motor Co. could announce a new round of salaried job cuts as soon as Friday, according to a published report.
The Detroit News reported Monday that Ford (Charts) will start by offering voluntary buyout packages and early-retirement incentives to white-collar workers.
While the nation's No. 2 automaker expects to achieve headcount reduction targets through voluntary programs, involuntary layoffs are likely to follow in some areas if too few workers take advantage of the incentives, according to the report.
Ford, which has between 35,000 and 40,000 U.S. salaried employees, announced earlier this year that it was trimming 4,000 salaried positions as it tries to stem losses in its core North American auto operations.
Ford spokeswoman Marcey Evans would not discuss Ford's plans.
"We don't comment on speculation, nor do we comment on any business that we're taking before the board," she told the News.
The Ford board is set to meet Wednesday and Thursday. The company is expected to announce further steps in its turnaround plan originally announced in February, when it said it would cut 30,000 hourly positions and close 14 plants by 2014.
Wall Street is looking for the company to speed up those plant closings and hourly staff cuts, perhaps following the lead of General Motors (Charts), and offering all the union-represented employees retirement incentives or severance packages to leave the company sooner rather than later.
"Ford has 87,000 hourly workers. If 86,000 were to leave, the market would be ecstatic," Bradley Rubin, an analyst with BNP Paribas, told the paper.
Gephardt working with Ford unions, execs
The News also reported that former Democratic congressman and presidential candidate Richard Gephardt, a long-time ally of labor unions, has become a key behind-the-scenes player in Ford's efforts to trim its costs.
The paper said Gephardt will serve as a special adviser and consultant to Ford through next summer's contract negotiations with the United Auto Workers.
Gephardt told the paper he is working with Ford to find creative solutions to its labor costs issues.
"We're trying to use some innovative ideas to try to square the circle," he said.
The paper reported that Gephardt also helped recruit Boeing Co. (Charts) executive Alan Mulally to become the new CEO of Ford, a position he was named to last week.
The paper said that in 2005, soon after Gephardt left office, Mulally hired him to help with Boeing's tricky labor negotiations with the machinists union in the summer of 2005. In September 2005, Boeing reached a deal to end a month-old strike by the International Association of Machinists, as Mulally and IAM President Tom Buffenbarger worked out a deal in talks attended by Gephardt.
Earlier in 2005, Gephardt helped investors buying Boeing plants in Wichita, Kan., and Tulsa, Okla., secure a labor deal with the airplane maker's machinists' union. He now serves as a director of the company formed after that purchase, Spirit AeroSystems Holdings.
http://money.cnn.com/2006/09/11/news...ion=2006091106
09-11-2006, 07:44 AM
#218
Suzuka Master
Ford to widen salaried job cuts
DEARBORN -- After eliminating 4,000 U.S. salaried jobs early this year, Ford Motor Co. is preparing an even deeper round of salaried cuts that could be announced as early as Friday.
The automaker will start by offering voluntary buyout packages and early-retirement incentives to white-collar workers, people familiar with the plan told The Detroit News. Involuntary layoffs are likely to follow if too few workers take advantage of the incentives.
In some departments at least, Ford expects to achieve headcount reduction targets through voluntary programs.
While the exact number is still being finalized, people familiar with Ford's plans say this round of cuts will be deeper than the 4,000 white collar jobs eliminated in the first quarter of the year.
Ford has between 35,000 and 40,000 salaried employees in the United States.
The early retirement buyouts are expected to include severance pay and benefits for a limited period of time.
The cuts are part of a broader cost-cutting strategy that is expected to include an expanded buyout program for blue-collar workers and accelerated plant closings. The buyouts, as well as other aspects of the plan, still need to be approved by Ford's board of directors when it meets Thursday. An announcement could come as soon as Friday.
Ford spokeswoman Marcey Evans would not discuss Ford's plans.
"We don't comment on speculation, nor do we comment on any business that we're taking before the board," she said.
Though Ford has no mandatory retirement age for most positions, Ford salaried employees are eligible for normal retirement benefits once they turn 65 and have completed at least one year of service with the company. They also can retire before then with reduced benefits. Workers 55 and over can retire after 10 years of service with the company, and workers of any age can retire after 30 years at Ford.
The more years of service an employee retires with, the greater their pension benefits.
According to compensation expert John Challenger of Challenger, Gray & Christmas Inc. in Chicago, offering early retirement buyouts is a way of shielding the company from potential age discrimination lawsuits.
After the last round of white-collar layoffs in February, Ford was sued by several former employees who accused the company of singling them out because of their age.
Challenger said companies would rather pick and choose who gets the ax based on performance. However, if too many older workers are on that list, offering buyouts can be a safer strategy.
"It limits their legal exposure," Challenger said, though he added that offering early retirement incentives may prompt talented workers to leave the company, too. "It is a tough decision. They're trying to find their way out of the thicket of problems they've got, but they don't want to lose good performers."
Challenger said that once a company decides to offer early retirement buyouts, it must offer them to all workers who meet the age requirements.
Ford has already offered a series of buyout packages to hourly workers at several of its U.S. plants. More than 6,500 workers had taken advantage of those offers as of Sept. 1, but Wall Street wants to see much deeper headcount cuts.
"Ford has 87,000 hourly workers. If 86,000 were to leave, the market would be ecstatic," said Bradley Rubin, an analyst with BNP Paribas in New York, who added that white-collar reductions are also high on his wish list. "This is what people are hoping to see."
Analysts like Rubin say Ford needs to take drastic steps to get its costs under control.
Though the automaker ended 2005 in the black, its North American automotive operations lost $1.6 billion. And Ford's financial troubles are mounting as it continues to lose market share to foreign competitors and demand for profitable pickups and sport utility vehicles withers in the face of high gasoline prices.
Ford posted a worse-than-expected second-quarter loss of $254 million in July, prompting Chairman Bill Ford Jr. to pledge additional cutbacks. The company has already committed to cutting some 30,000 factory jobs and idling 14 plants by 2012.
http://www.detnews.com/apps/pbcs.dll...609110336/1148
The automaker will start by offering voluntary buyout packages and early-retirement incentives to white-collar workers, people familiar with the plan told The Detroit News. Involuntary layoffs are likely to follow if too few workers take advantage of the incentives.
In some departments at least, Ford expects to achieve headcount reduction targets through voluntary programs.
While the exact number is still being finalized, people familiar with Ford's plans say this round of cuts will be deeper than the 4,000 white collar jobs eliminated in the first quarter of the year.
Ford has between 35,000 and 40,000 salaried employees in the United States.
The early retirement buyouts are expected to include severance pay and benefits for a limited period of time.
The cuts are part of a broader cost-cutting strategy that is expected to include an expanded buyout program for blue-collar workers and accelerated plant closings. The buyouts, as well as other aspects of the plan, still need to be approved by Ford's board of directors when it meets Thursday. An announcement could come as soon as Friday.
Ford spokeswoman Marcey Evans would not discuss Ford's plans.
"We don't comment on speculation, nor do we comment on any business that we're taking before the board," she said.
Though Ford has no mandatory retirement age for most positions, Ford salaried employees are eligible for normal retirement benefits once they turn 65 and have completed at least one year of service with the company. They also can retire before then with reduced benefits. Workers 55 and over can retire after 10 years of service with the company, and workers of any age can retire after 30 years at Ford.
The more years of service an employee retires with, the greater their pension benefits.
According to compensation expert John Challenger of Challenger, Gray & Christmas Inc. in Chicago, offering early retirement buyouts is a way of shielding the company from potential age discrimination lawsuits.
After the last round of white-collar layoffs in February, Ford was sued by several former employees who accused the company of singling them out because of their age.
Challenger said companies would rather pick and choose who gets the ax based on performance. However, if too many older workers are on that list, offering buyouts can be a safer strategy.
"It limits their legal exposure," Challenger said, though he added that offering early retirement incentives may prompt talented workers to leave the company, too. "It is a tough decision. They're trying to find their way out of the thicket of problems they've got, but they don't want to lose good performers."
Challenger said that once a company decides to offer early retirement buyouts, it must offer them to all workers who meet the age requirements.
Ford has already offered a series of buyout packages to hourly workers at several of its U.S. plants. More than 6,500 workers had taken advantage of those offers as of Sept. 1, but Wall Street wants to see much deeper headcount cuts.
"Ford has 87,000 hourly workers. If 86,000 were to leave, the market would be ecstatic," said Bradley Rubin, an analyst with BNP Paribas in New York, who added that white-collar reductions are also high on his wish list. "This is what people are hoping to see."
Analysts like Rubin say Ford needs to take drastic steps to get its costs under control.
Though the automaker ended 2005 in the black, its North American automotive operations lost $1.6 billion. And Ford's financial troubles are mounting as it continues to lose market share to foreign competitors and demand for profitable pickups and sport utility vehicles withers in the face of high gasoline prices.
Ford posted a worse-than-expected second-quarter loss of $254 million in July, prompting Chairman Bill Ford Jr. to pledge additional cutbacks. The company has already committed to cutting some 30,000 factory jobs and idling 14 plants by 2012.
http://www.detnews.com/apps/pbcs.dll...609110336/1148
09-11-2006, 07:48 AM
#219
Race Director
I always wonder if companies can willy-nilly cut that many people off their rolls without affecting production, why did they have them in the first place?
09-11-2006, 11:30 AM
#220
Pro
I'm going to bet on them getting yanked by BMW. They used to have land rover, no reason they wont pick up AM to use the higher AM models as competition to MB and Porsche. Makes perfect sense to me?
09-11-2006, 12:52 PM
#221
Fahrvergnügen'd
Originally Posted by TheAcAvenger
I'm going to bet on them getting yanked by BMW. They used to have land rover, no reason they wont pick up AM to use the higher AM models as competition to MB and Porsche. Makes perfect sense to me?
09-11-2006, 01:10 PM
#222
Pro
You're M6 point is valid, but its the same kind of situation you have with VW's Porsche 911 and their lamborghini. One's practical and one's exotic. You have your M6 which is borderline "mass produced" (i'm exaggerating, but you know what i'm saying) and then you have your DB9 which performance wise is very similar, but its still miles apart. Much in the same way a 911 turbo/GT3 is very similar to a Gallardo in performance but its still miles apart (I dont honestly believe they're miles apart as I'm a ferrari brat who thinks lambos are so overrated, but once again, you get my drift). Come on fellas, i don't believe its giong to happen, i'm just saying I could see it happening
09-12-2006, 05:51 PM
#223
problem with ford is they are penny pinchers when it comes to some key components used in cars
some examples
ignition switches that like to catch fire
rear strut plates made from thin stamped steel (taurus and other cars with struts in the rear)
brakes on a 3400lb car that were only 11" in teh front (pre 92 taurus and sables)
3.8L that loves to blow head gaskets
transmissions (1991) AXOD that had an aluminum forward clutch that would crack and car would not move forward anymore.......
Taurus / Sables are extremely reliable once you address all of the shortcomings.
some examples
ignition switches that like to catch fire
rear strut plates made from thin stamped steel (taurus and other cars with struts in the rear)
brakes on a 3400lb car that were only 11" in teh front (pre 92 taurus and sables)
3.8L that loves to blow head gaskets
transmissions (1991) AXOD that had an aluminum forward clutch that would crack and car would not move forward anymore.......
Taurus / Sables are extremely reliable once you address all of the shortcomings.
09-13-2006, 05:55 PM
#224
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New Ford CEO drives a Lexus
Ford's new CEO Alan Mulally drives a Lexus LS 430, and he says he made the purchase because "it's the finest car in the world." Detroit Free Press columnist Tom Walsh says the fact alone "tells us a lot about Alan Mulally." Mulally, according to Walsh, is a realist who "knows Lexus cars are better than anything currently in Ford's lineup, and he doesn't care if Ford employees or the media hear him say it out loud."
09-13-2006, 06:22 PM
#225
The sizzle in the Steak
Good for Mulally!!!
He is a realist.
He is a realist.
09-13-2006, 07:46 PM
#228
Good Lord it's gonna be like the 12 step program from now on. The first step is acknowledging you have a problem...
He's off to a good start! Nice confidence builder....
09-14-2006, 08:39 AM
#231
Suzuka Master
that's awesome! I remember the old commercial with Bill Ford Jr. (or whatever) who said his finest vehicle choice would be a convertible mustang...
09-14-2006, 10:32 AM
#233
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Honestly, if I were in charge, I'd make everyone who had anything to do with the design or engineering to drive OTHER cars, espeically cars that are more popular and appealing in both quality and owner satisfaction.
How are you goign to compete if you dont' know who you're competing with? Why do you think good coaches make their teams study videos of their opponents playing?
How are you goign to compete if you dont' know who you're competing with? Why do you think good coaches make their teams study videos of their opponents playing?
09-14-2006, 10:51 AM
#234
Three Wheelin'
Originally Posted by mrdeeno
Honestly, if I were in charge, I'd make everyone who had anything to do with the design or engineering to drive OTHER cars, espeically cars that are more popular and appealing in both quality and owner satisfaction.
How are you goign to compete if you dont' know who you're competing with? Why do you think good coaches make their teams study videos of their opponents playing?
How are you goign to compete if you dont' know who you're competing with? Why do you think good coaches make their teams study videos of their opponents playing?
Good point. Know your competition. This Mullaly guy shows signs of promise.
09-14-2006, 02:58 PM
#235
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Ford, UAW reach deal to offer buyouts - - Source: http://news.yahoo.com/
DETROIT - A local union leader says Ford Motor Co. and the United Auto Workers have reached an agreement on Thursday to offer buyout packages to more than 75,000 union workers.
In other news, the automaker announced that Anne Stevens, an architect of the restructuring effort and one of the auto industry's highest ranking women, is retiring.
The announcement that Stevens, 57, will retire came on the eve of the automaker's planned announcement that it will accelerate job cuts and take other steps in hopes of returning to profitability.
She had been at the center of Ford's turnaround efforts since October 2005 when she was named executive vice president. She and Mark Fields, Ford's recently appointed president for the Americas, oversaw development of the company's Way Forward plan. Ford had seen its sales slump amid competition from fuel-efficient models from Asian automakers, and the plan was designed to cut costs.
The Dearborn-based automaker also on Thursday announced the retirement of David Szczupak, a group vice president for the Americas.
In other news, the automaker announced that Anne Stevens, an architect of the restructuring effort and one of the auto industry's highest ranking women, is retiring.
The announcement that Stevens, 57, will retire came on the eve of the automaker's planned announcement that it will accelerate job cuts and take other steps in hopes of returning to profitability.
She had been at the center of Ford's turnaround efforts since October 2005 when she was named executive vice president. She and Mark Fields, Ford's recently appointed president for the Americas, oversaw development of the company's Way Forward plan. Ford had seen its sales slump amid competition from fuel-efficient models from Asian automakers, and the plan was designed to cut costs.
The Dearborn-based automaker also on Thursday announced the retirement of David Szczupak, a group vice president for the Americas.
09-14-2006, 02:59 PM
#236
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Ford top executives Stevens, Szczupak to retire - - Source: http://news.yahoo.com/
DETROIT (Reuters) - Ford Motor Co. (NYSE:F - news) said on Thursday that two of its top executives have decided to retire, a day before the automaker is expected to announce a new sweeping restructuring plan.
Anne Stevens, executive vice president and chief operating officer of the automaker's Americas unit, and David Szczupak, group vice president of manufacturing for the Americas, will retire, the company said.
Both the executives have been on their current jobs for less than a year.
Stevens, one of the highest ranking women in the automotive industry and the first female executive vice president at Ford, will be leaving after a 16-year career at the automaker.
She was named to her current post last October and was a key executive in charge of Ford's turnaround efforts and its brand strategy.
Anne Stevens, executive vice president and chief operating officer of the automaker's Americas unit, and David Szczupak, group vice president of manufacturing for the Americas, will retire, the company said.
Both the executives have been on their current jobs for less than a year.
Stevens, one of the highest ranking women in the automotive industry and the first female executive vice president at Ford, will be leaving after a 16-year career at the automaker.
She was named to her current post last October and was a key executive in charge of Ford's turnaround efforts and its brand strategy.
09-14-2006, 03:02 PM
#237
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Ford to announce restructuring plan Friday - - by Mira Oberman - - Source: http://news.yahoo.com/
CHICAGO (AFP) - Struggling Ford Motor Co. will announce details of its updated restructuring plan on Friday morning, the automaker said.
Ford lost 1.4 billion dollars in the first half of this year as US sales fell 10 percent, prompting many on Wall Street to say the automaker's plan to shutter 14 plants in North American and eliminate 30,000 union jobs by 2012 is too slow.
Analysts expect Ford to accelerate the closures to occur by 2008. Union officials met in Detroit this week to discuss the plan and a deal is expected on a broader buyout package.
More layoffs are also expected among salaried employees. A source within the company told AFP Ford is planning to cut up to a third of its top managers and executives and a quarter of its overall white collar workforce.
At least part of the reason for the cuts in the salaried ranks is that the company has pledged to eliminate various layers of supervision as part of the drive for greater efficiency, union officials told AFP.
An internal company forecast detailed by the Detroit News Thursday highlighted the urgency of the cost cutting as the company heads towards an annual loss of 9 billion dollars.
The forecast prepared by the automaker's chief financial officer projects a pretax loss of 5.6 billion dollars to 5.9 billion dollars in worldwide automotive operations, excluding non-recurring charges. Restructuring costs would add another two to three billion dollars in losses, the report said.
The extent of the losses depends upon how many workers accept buyout packages as part of Ford's restructuring plan, the News reported.
A company spokesman cited by the News would not confirm or deny the projections.
About 6,500 of Ford's 82,000 union members had accepted buyout packages by Sept.1. Those packages are currently only being offered at plants scheduled to close but Ford could follow General Motors Corp in offering the packages to all union members.
Ford has already eliminated 4,000 white-collared jobs and analysts expect those cuts to spread to the automaker's European brands. Volvo employees were told on Monday that 950 employees would be eliminated globally.
Ford has also announced intentions to sell its British sports car brand Aston Martin and other marques such as Jaguar could be next on the block, industry experts believe.
Other options for Ford might be to muscle into alliance talks between GM and Renault-Nissan, or even go private to avoid Wall Street scrutiny.
A news release detailing the restructuring plan will be issued at 1100 GMT, Ford said. A presentation to employees and the media will be made by the company's new chief executive officer, Alan Mulally at 1300 GMT.
Ford lost 1.4 billion dollars in the first half of this year as US sales fell 10 percent, prompting many on Wall Street to say the automaker's plan to shutter 14 plants in North American and eliminate 30,000 union jobs by 2012 is too slow.
Analysts expect Ford to accelerate the closures to occur by 2008. Union officials met in Detroit this week to discuss the plan and a deal is expected on a broader buyout package.
More layoffs are also expected among salaried employees. A source within the company told AFP Ford is planning to cut up to a third of its top managers and executives and a quarter of its overall white collar workforce.
At least part of the reason for the cuts in the salaried ranks is that the company has pledged to eliminate various layers of supervision as part of the drive for greater efficiency, union officials told AFP.
An internal company forecast detailed by the Detroit News Thursday highlighted the urgency of the cost cutting as the company heads towards an annual loss of 9 billion dollars.
The forecast prepared by the automaker's chief financial officer projects a pretax loss of 5.6 billion dollars to 5.9 billion dollars in worldwide automotive operations, excluding non-recurring charges. Restructuring costs would add another two to three billion dollars in losses, the report said.
The extent of the losses depends upon how many workers accept buyout packages as part of Ford's restructuring plan, the News reported.
A company spokesman cited by the News would not confirm or deny the projections.
About 6,500 of Ford's 82,000 union members had accepted buyout packages by Sept.1. Those packages are currently only being offered at plants scheduled to close but Ford could follow General Motors Corp in offering the packages to all union members.
Ford has already eliminated 4,000 white-collared jobs and analysts expect those cuts to spread to the automaker's European brands. Volvo employees were told on Monday that 950 employees would be eliminated globally.
Ford has also announced intentions to sell its British sports car brand Aston Martin and other marques such as Jaguar could be next on the block, industry experts believe.
Other options for Ford might be to muscle into alliance talks between GM and Renault-Nissan, or even go private to avoid Wall Street scrutiny.
A news release detailing the restructuring plan will be issued at 1100 GMT, Ford said. A presentation to employees and the media will be made by the company's new chief executive officer, Alan Mulally at 1300 GMT.
09-14-2006, 03:07 PM
#239
Senior Moderator
I'm not sure if that's a "sign" of confidence when your newly appointed CEO drives & owns a (Japanese) competitor. You mean to tell me that he can't "afford" to buy a Ford?
Although I realize it might be a wake-up call to improve quality on Ford's sake but at least man up and drive a product the company you're supposed to fix produce.
I don't blame him ... if I had his resources, I would buy a LS460h personally and have someone drive me so I could enjoy the shiatsu massage and ML system in the rear seats...
Although I realize it might be a wake-up call to improve quality on Ford's sake but at least man up and drive a product the company you're supposed to fix produce.
I don't blame him ... if I had his resources, I would buy a LS460h personally and have someone drive me so I could enjoy the shiatsu massage and ML system in the rear seats...
09-15-2006, 01:10 PM
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Ford Overhauls Way Forward Plan - - By AMY WILSON | AUTOMOTIVE NEWS - - Source: Autoweek
DETROIT -- Ford Motor Co. said today it will cut its operating costs by $5 billion and cut its salaried work force by one-third, or about 14,000 positions, as it speeds up its Way Forward restructuring plan.
Ford also said it will not pay a stock dividend for the fourth quarter, and will sell or close all former Visteon plants by the end of 2008 and close other plants.
Ford will offer early retirement and buyout packages to its white-collar employees to try to achieve the planned job cut of about 14,000 to its North American salaried work force. That 14,000 number already includes the equivalent of 4,000 positions eliminated in the first quarter of 2006.
That means Ford has another 10,000 positions to trim. If it can’t achieve that number through voluntary departures, Ford said it would use involuntary separations. Most employees are expected to depart by the end of the first quarter of 2007.
The white-collar job cuts come on top of a buyout offer Ford made Thursday, Sept. 14, to its 75,000 UAW members in the United States. That buyout offers up to $140,000 to get hourly workers to leave the automaker.
No North America profitability before 2009
The automaker now acknowledges that it won't return its North American automotive unit to profitability by the end of 2008 as previously planned. Because of further expected market share declines, Ford now says that full-year profitability for the unit is not expected before 2009.
That unit lost $1.6 billion before taxes in 2005. It lost another $1.3 billion before taxes and one-time charges through the first half of this year.
Market share for the Ford, Lincoln and Mercury brands will continue to fall, Ford said today. The combined market share of the three brands already has dropped by 1.1 percentage points through August, to 16.8 percent of the U.S. market.
Ford said today that U.S. market share of those brands will be in the low 16 percent range by the end of this year. Ford expects share to further fall to the 14 to 15 percent range in the future.
Ford will idle its Norfolk, Va., assembly plant in 2007, a year earlier than planned. That plant builds F-150 pickups.
A shift reduction is now planned for the Norfolk plant and the St. Paul, Minn., plant that builds the Ford Ranger pickup.
Ford added two plants to its closing list:
A stamping plant in Maumee, Ohio.
An engine plant in Essex, Ontario.
In total, nine plants will close through 2008. Ford will cease production at 16 North American plants, including seven assembly plants, by the end of 2012.
Ford said it would add a third shift at its Dearborn, Mich., truck plant in 2007 for F-150 production.
Lincoln Town Car is saved
Ford announced the following product actions:
Production of the Lincoln Town Car will move to Ford's St. Thomas, Ontario, assembly plant after the Wixom, Mich., assembly plant is idled in 2007. The St. Thomas plant still will drop to a one-shift operation as previously announced.
A new seven-passenger crossover based on the Ford Fairlane concept will go on sale in 2008 and be produced at the Oakville, Ontario, assembly plant.
A redesigned F-150 will go on sale in 2008. Along with redesigned Super Duty F-250 and F-350 pickups slated to go on sale in early 2007, Ford expects to retain leadership in the full-sized pickup segment.
The Lincoln MKS flagship sedan will be assembled at the Chicago assembly plant and go on sale in 2008.
Work on creating new small cars and even more crossovers is intensifying. Ford didn't offer timing for those products, but said the vehicles will be based on B-segment and C-segment platforms not presently used in North America.
Still too much capacity?
One industry analyst said Ford’s planned capacity reduction does not seem aggressive enough given Ford’s acknowledgment that U.S. market share for its domestic brands will be in the range of 14 to 15 percent going forward.
Ford reiterated today that North American manufacturing capacity is being reduced to 3.6 million units by the end of 2008, down 26 percent versus 2005 -- as previously announced and in line with consumer demand, Ford said.
But U.S. market share of 14 to 15 percent “translates to unit demand of roughly 2.5 million units,” Credit Suisse analyst Chris Ceraso said in a research note. “Adding about 150,000 sales for Canada and Mexico brings total North American demand to roughly 2.7 million units, or about 25 percent below planned production capacity.”
Ford also said it will not pay a stock dividend for the fourth quarter, and will sell or close all former Visteon plants by the end of 2008 and close other plants.
Ford will offer early retirement and buyout packages to its white-collar employees to try to achieve the planned job cut of about 14,000 to its North American salaried work force. That 14,000 number already includes the equivalent of 4,000 positions eliminated in the first quarter of 2006.
That means Ford has another 10,000 positions to trim. If it can’t achieve that number through voluntary departures, Ford said it would use involuntary separations. Most employees are expected to depart by the end of the first quarter of 2007.
The white-collar job cuts come on top of a buyout offer Ford made Thursday, Sept. 14, to its 75,000 UAW members in the United States. That buyout offers up to $140,000 to get hourly workers to leave the automaker.
No North America profitability before 2009
The automaker now acknowledges that it won't return its North American automotive unit to profitability by the end of 2008 as previously planned. Because of further expected market share declines, Ford now says that full-year profitability for the unit is not expected before 2009.
That unit lost $1.6 billion before taxes in 2005. It lost another $1.3 billion before taxes and one-time charges through the first half of this year.
Market share for the Ford, Lincoln and Mercury brands will continue to fall, Ford said today. The combined market share of the three brands already has dropped by 1.1 percentage points through August, to 16.8 percent of the U.S. market.
Ford said today that U.S. market share of those brands will be in the low 16 percent range by the end of this year. Ford expects share to further fall to the 14 to 15 percent range in the future.
Ford will idle its Norfolk, Va., assembly plant in 2007, a year earlier than planned. That plant builds F-150 pickups.
A shift reduction is now planned for the Norfolk plant and the St. Paul, Minn., plant that builds the Ford Ranger pickup.
Ford added two plants to its closing list:
A stamping plant in Maumee, Ohio.
An engine plant in Essex, Ontario.
In total, nine plants will close through 2008. Ford will cease production at 16 North American plants, including seven assembly plants, by the end of 2012.
Ford said it would add a third shift at its Dearborn, Mich., truck plant in 2007 for F-150 production.
Lincoln Town Car is saved
Ford announced the following product actions:
Production of the Lincoln Town Car will move to Ford's St. Thomas, Ontario, assembly plant after the Wixom, Mich., assembly plant is idled in 2007. The St. Thomas plant still will drop to a one-shift operation as previously announced.
A new seven-passenger crossover based on the Ford Fairlane concept will go on sale in 2008 and be produced at the Oakville, Ontario, assembly plant.
A redesigned F-150 will go on sale in 2008. Along with redesigned Super Duty F-250 and F-350 pickups slated to go on sale in early 2007, Ford expects to retain leadership in the full-sized pickup segment.
The Lincoln MKS flagship sedan will be assembled at the Chicago assembly plant and go on sale in 2008.
Work on creating new small cars and even more crossovers is intensifying. Ford didn't offer timing for those products, but said the vehicles will be based on B-segment and C-segment platforms not presently used in North America.
Still too much capacity?
One industry analyst said Ford’s planned capacity reduction does not seem aggressive enough given Ford’s acknowledgment that U.S. market share for its domestic brands will be in the range of 14 to 15 percent going forward.
Ford reiterated today that North American manufacturing capacity is being reduced to 3.6 million units by the end of 2008, down 26 percent versus 2005 -- as previously announced and in line with consumer demand, Ford said.
But U.S. market share of 14 to 15 percent “translates to unit demand of roughly 2.5 million units,” Credit Suisse analyst Chris Ceraso said in a research note. “Adding about 150,000 sales for Canada and Mexico brings total North American demand to roughly 2.7 million units, or about 25 percent below planned production capacity.”