Ford to Stop making minivans/huge layoffs

[ANGELMAV]

WASHINGTON, Jan 20, 2006 (UPI via COMTEX) -- Ford Motor Co.'s planned restructuring is expected to include dropping its line of minivans, which are selling poorly across North America.

The No. 2 automaker will announce a sweeping restructuring, numerous plant closures and massive layoffs of its worldwide staff Monday in discussing fourth-quarter results, USA Today said Friday.

Minivan sales at the financially ailing company, which lost $1.34 billion in North America during last year's first three quarters, sank sharply in 2005: Ford Freestar sales were down 25.1 percent from 2004 and Mercury Monterey sales were off 53.1 percent.

"We have to pick and choose where we want to compete," Mark Fields, Ford's executive vice president and president of the Americas, said in an interview last week. "The idea you have to be in all the segments, that's an old way of thinking."

 

[ANGELMAV]

Ford to cut 25 percent of its capacity
January 20, 2006 2:30 PM ET
NEW YORK, Jan 20, 2006 (UPI via COMTEX) -- Ford Motor Co. plans to close at least 10 factories across North America and eliminate 25,000 hourly jobs.

In an announcement set for Monday, the financially ailing automaker will announce a 25 percent capacity reduction and staff cuts that, with layoffs among salaried workers, will reach 30,000, the Wall Street Journal said Friday. Among plant set to be closed are facilities in St. Louis and Atlanta.

Ford also will reveal its decision to leave the minivan business. Such sales at the financially ailing company, which lost $1.34 billion in North America during last year's first three quarters, sank sharply in 2005: Ford Freestar sales were down 25.1 percent from 2004 and Mercury Monterey sales were off 53.1 percent.

"We have to pick and choose where we want to compete," Mark Fields, Ford's executive vice president and president of the Americas, said in an interview with the Journal last week. "The idea you have to be in all the segments, that's an old way of thinking."

 

[2003gt]

ya i'm worried about this announcement.....

i am employed by ford at the F-150 Plant in Norfolk. We are very high up on the best plant list, but that usually doesn't mean much....were getting time off at the beginning of our shift monday to watch the announcement live...

 

[exwifegotstang]

Allthough deceased this man claimed another victory today, we let him complete another step in the invasion begun in 1941.

 

[199]

I had use wikipedia to figure who the hell this dude is, http://en.wikipedia.org/wiki/Emperor_Hirohito
he is a Japanese emperor

 

[exwifegotstang]

Good work 199! When agressive invasion failed in 1941-45, they studied us and studied us, capitalized on our weaknesses as a culture and a nation, our love for the automoble. They used world and natural events to thier advantage, and planned thier invasion by the takeover of our automotive industry and soon our very essence. Unless the US auto industry wakes up and makes some wise decisions, all auto workers will work for the Emperor someday soon. That is of course if the Chinese don't upset the apple cart with three dollars an hour labor on the assembly line and displace the big three and all the Japenese cars.

 

[gp001]

Actually, you can blame people like Jimmy Hoffa and Walter Reuther

 

[exwifegotstang]

They were part of our weakness.

 

[D.Hearne]

I had use wikipedia to figure who the hell this dude is, http://en.wikipedia.org/wiki/Emperor_Hirohito
he is a Japanese emperor

Your age is showing. Us "old timers" know that guy on sight. Or maybe you just should study your history better, my 20 year old ( who just went into the Marines ) knows that guy's picture as well as I do.

 

[herooftheday97]

Your age is showing. Us "old timers" know that guy on sight. Or maybe you just should study your history better, my 20 year old ( who just went into the Marines ) knows that guy's picture as well as I do.

At first, I didn't recognize him, but after looking more closely figured out he was a Japanese Emperor, however his named had escaped me.

 

[66Satellite]

Good work 199! When agressive invasion failed in 1941-45, they studied us and studied us, capitalized on our weaknesses as a culture and a nation, our love for the automoble. They used world and natural events to thier advantage, and planned thier invasion by the takeover of our automotive industry and soon our very essence. Unless the US auto industry wakes up and makes some wise decisions, all auto workers will work for the Emperor someday soon. That is of course if the Chinese don't upset the apple cart with three dollars an hour labor on the assembly line and displace the big three and all the Japenese cars.

In WWII Japan was mostly interested in Southeast Asia and China. They only attacked Pearl Harbor to neutralize US striking power in the Pacific. There was no invasion. The Japanese are kicking our ass in the car industry by investing more heavily in R&D, not hiring union labor and not giving fat benefit packages to their workers.

 

[199]

Your age is showing. Us "old timers" know that guy on sight. Or maybe you just should study your history better, my 20 year old ( who just went into the Marines ) knows that guy's picture as well as I do.

when he died I was 5, so i didn' have a idea what he looked like, i guess im also getting educated in history here at "StangNet High" :SNSign:

 

[DukeOfValencia]

here's a thought on how Ford could help fix the financial situation...
I did a quick search to see what the average salaries are for auto assemblers. Here's what I found: (go easy on me if the #'s are a little off)
Average Auto Assembler = $55K a year

Ford Chief Exec/Chairmain 2004 = $22M + $12M in stock
Ford COO = $1M Salary + $2M bonus
Exec VP $757K + $1.1M Bonus
2 (now retired) long time execs $1M Salary + $1.5M Bonus EACH!!!

Grand total: $43,857,000 in 2004 for 5 PEOPLE!!!... That is about equal to the salaries of 800 of the people they are laying off. Maybe it's time to cut some executives (or at least thier pay) and use that money to build better quality cars...

just a thought.

 

[66Satellite]

here's a thought on how Ford could help fix the financial situation...
I did a quick search to see what the average salaries are for auto assemblers. Here's what I found: (go easy on me if the #'s are a little off)
Average Auto Assembler = $55K a year

Ford Chief Exec/Chairmain 2004 = $22M + $12M in stock
Ford COO = $1M Salary + $2M bonus
Exec VP $757K + $1.1M Bonus
2 (now retired) long time execs $1M Salary + $1.5M Bonus EACH!!!

Grand total: $43,857,000 in 2004 for 5 PEOPLE!!!... That is about equal to the salaries of 800 of the people they are laying off. Maybe it's time to cut some executives (or at least thier pay) and use that money to build better quality cars...

just a thought.

But these are some of the geniuses who are responsible for killing off the Lincoln LS, and letting the Ranger flounder along with no meaningful updates or improvements for years and years...

I definitely agree the main problems reside with upper management. They should be the first to go. I don't even understand the concept of pulling that kind of salary when the company you are running into the ground is in the red.

 

[gp001]

here's a thought on how Ford could help fix the financial situation...
I did a quick search to see what the average salaries are for auto assemblers. Here's what I found: (go easy on me if the #'s are a little off)
Average Auto Assembler = $55K a year

Most assemblers are unskilled laborers
They make, on average, $25 to $27.50 an hour (regular pay, not overtime, holiday, special shift)
They only pay 7% of their health care (most of corporate America pays 25-30%)
They can retire with a full pension in less than 30 years (most of corporate America use 401k plans)
Then add in all the other UAW "benefits" plans, such as JOBS

Wagoner said the UAW will need to confront the cost of the jobs bank, under which GM and the other Detroit automakers pay hourly autoworkers full wages and benefits even when a plant has closed or stopped production.

The jobs bank program was designed to provide a safety net for workers during a temporary downturn. But the costs of the program have mounted and have become a permanent burden.

Wagoner didn't specify how much the program costs. But a person familiar with the program told the Free Press last year that GM pays between 5,000 and 6,000 workers in the jobs bank -- the most of any company -- costing the automaker an estimated $700 million to $800 million annually.

The UAW, and all unions, have become the exact thing that they were in place to prevent. Instead of companies screwing workers it's now workers screwing the company. New workers are easy to find, new companies not so much

No one should make that much money and not be held to performance standards

 

[2003gt]

id personally like to see you work like we do and not expect to get paid like we do........

 

[DaNd4Speed]

id personally like to see you work like we do and not expect to get paid like we do........

Cry me a freakin river! Unions are the whole reason we are losing manufacturing jobs overseas. I'd like you to try to do the work I do, as a Mechanical Engineer, which requires a brain, and hard earned college education. I work in one of the highest per capita income areas, have a BS degree in Engineering AND 5 years experience...and yet make just about the same if not less than a UAW assembly line worker?!? Where's the incentive to be smart when all you need to do is turn a screw?

In NYC last month, the MTA union workers went on strike because I guess jobs that pay $60k/year for a ticket counter wasn't good enough. And you know what, they got their way!

 

[D.Hearne]

id personally like to see you work like we do and not expect to get paid like we do........

This quote applies to every job, not just your's. You knew what the job paid when you took it. Nobody's holding a gun to your head to stay there, when you have all the opportunities everyone else in this country's got to improve your situation. Sure, I'd like to make $100K per year for what I do too,( I haul the fuel your car runs on, without me, you'd go no where, fast ) but it ain't gonna happen anytime soon.

 

[D.Hearne]

Cry me a freakin river! Unions are the whole reason we are losing manufacturing jobs overseas. I'd like you to try to do the work I do, as a Mechanical Engineer, which requires a brain, and hard earned college education. I work in one of the highest per capita income areas, have a BS degree in Engineering AND 5 years experience...and yet make just about the same if not less than a UAW assembly line worker?!? Where's the incentive to be smart when all you need to do is turn a screw?

In NYC last month, the MTA union workers went on strike because I guess jobs that pay $60k/year for a ticket counter wasn't good enough. And you know what, they got their way!

I wouldn't brag too hard about being an Engineer, I've seen hundreds of things FUBAR'D by them. Things that are engineered beyond what's necessary and overly complicated to the point where they're completely useless In these cases, the brain power (book learning from a college ) was used to engineer something, when common sense (which doesn't require a college degree) would have dictated a better solution.

 

[DaNd4Speed]

I wouldn't brag too hard about being an Engineer, I've seen hundreds of things FUBAR'D by them. Things that are engineered beyond what's necessary and overly complicated to the point where they're completely useless In these cases, the brain power (book learning from a college ) was used to engineer something, when common sense (which doesn't require a college degree) would have dictated a better solution.

I've seen hundreds of FUBAR'D truck wrecks too, what's your point?

So I guess engineers lack a common sense? Quite the opposite in most cases. I'll agree there are some who are strictly by the book who could spit out equations all day, and then there are some (like myself) who work in a more practical approach.

Not trying to detract from the original post, all I'm just saying is that the balance of pay between a typical blue collar union worker and a non union white collar worker is off, that's all.