Ford Says They Will Cut 14,000 Salaried Positions In Statement – Will Bring New Vehicles to Market Faster

Ford Says They Will Cut 14,000 Salaried Positions In Statement – Will Bring New Vehicles to Market Faster

Ford Freestyle
Stock Photo

Ford stocks dropped more than 11 percent, even though the automaker announced it will cut more than 10,000 white collar jobs and will offer buyout and early retirement packages to all of its 75,000 hourly workers. The company also announced it will suspend common and Class B Stock dividends beginning in the fourth quarter of 2006.

All of the U.S. automakers are making tough decisions. Chrysler has announced it will cut U.S. production through 2006. General Motors plans a consumers shift from gas guzzling SUVs to smaller, more economical cars.

The cutbacks at Ford are considered another blow to unionized labor in this country. Ford hopes to cut $5 billion from its operating costs. A company statement says they will reduce their salaried-related workforce by a third, the equivalent of about 14,000 positions.

In the statement, Ford says they will accelerate the delivery of new cars. The company says that 70 percent of Ford, Lincoln and Mercury products by volume will be new or significantly upgraded between now and the end of 2008.

Although Ford of Europe and South America are profitable, Ford does not expect to see a profit in North America before 2009. The company lost money in the Asia Pacific and African markets as well.

By John Waters
Best Syndication Writer

Share/Save/Bookmark

      

Post to Facebook

Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation.
Use of this site means that you agree to our TERMS OF SERVICE

Advertise On This Site
Copyright © 2006-2015 By Best Syndication All Rights Reserved