Ford Announces Layoffs

[biker]

Ford Motor has been working on a reduction plan for the last month. Financial and auto analysts have been expecting blue collar layoffs of 10,000 and the closure of 7 plants.

Billy Ford, Chairman of Ford, announced that Ford would lay off 25,000 to 30,000 by the end of 1998. The plan would close 14 manufacturing facilities, including five final assembly plants.

Another huge blow to what used to be accuarately referred to as the "Big Three".

Since GM is still much larger than Ford, I think you can expect GM to be upping its layoff target far above the 30,000 peviously announced.

[biker]

Further news reports are clarifying the restructuring.

Job cuts of 25k to 30k will kick in by the end of 2012. (Have no idea why I put "1998").

It is 14 plants.

This will cut Ford's capacity by 26%. There has been no extrapolation as to the impact on Visteon and other Ford suppliers.

Daimler Chrysler this AM is announcing a cut of 5,000 jobs in its management ranks.

Nissan is opening a final assembly plant outside of San Antonio, Texas.

So the story continues: Detroit-North, declining. Detroit-South, expanding.

[300miles]

Originally posted by biker
So the story continues: Detroit-North, declining. Detroit-South, expanding.
Toyota may build a large plant in Michigan. It would be a very smart move if they did.... lots of experienced people have been, and will be, layed off from Ford and GM. All of those people would love to find new auto work close to home.

[biker]

I would be amazed if they opened a plant in Michigan. I'm surprised any of these transplants even went as far north as southern Ohio.

They need to make sure the UAW disease never infects their operations.

Have you talked with any UAW members lately? Would you pay these people $67k per year to work for you?

The world does not make sense when UAW "workers" get paid $67k a year and experienced IT people make $40k per year. I know who I'd rather have on my team.

Even worse, the auto companies pay tens of thousands of these guys $67k per year not to work.

I think there should be Congressional hearings. The UAW must be on the take from Toyota, Nissan and company to burden the "American" auto companies with this unproductive overhead.

[300miles]

Toyota has some facilities in Michigan already. Ann Arbor has the Toyota Technical Center and a design studio. Hino Motors (trucks) has a sales office in the Detroit burbs. Aisin Seiki (supplier) has built a proving ground in the area. Denso (another supplier part owned by Toyota) has sites in Western MI with 4,000 workers.

An actual Toyota plant though with be a much bigger target by the UAW.

The MI state govt is wooing Japanese companies in order to get jobs for all their auto trade people that are losing work from GM and Ford. It will be interesting to see what happens. The layed-off auto workers can complain about Japanese cars, but if they can get a good job working for Toyota I bet they change their tune fast.

I just hope GM and Ford get to the root of their problems with these restructurings. Just laying off people isn't enough.

[biker]

Originally posted by 300miles
[B]
An actual Toyota plant though with be a much bigger target by the UAW.
B]

Yeah, I think there's very few (as in NONE) UAW members in research or sales.

I, too, hope there's a way for GM and Ford to turn things around.

But I don't think so. After 20 years as a stockholder, I sold my last positions off this month.

I think both mgt and labor at these two hulks are united in their determination to "stick it out" somehow till their pensions kick in.

I see only one solution. New leadership. Quickly and completely.

Kirk Kerkorian has reportedly lost $480,000,000 on his investment in GM. That's half a BILLION! For a very small fraction of that, he could have the senior managment of the companies and the UAW rubbed out. Maybe get the Board of Directors thrown in as a volume concession.

but I don't think it will happen.

[steven]

Ford on Monday announced it will close 14 manufacturing plants and cut 25,000 to 30,000 jobs over the next six years, part of a plan designed to improve its flagging results in North America. Executives identified only five of the plants they will close, and by year's end, they will announce two additional assembly plants destined for shutdown.

The 56-year-old Hamburg plant employs 1,500 people, with a predominantly hourly work force. Its workers provide stamped parts for a variety of Ford vehicles assembled across North America.

"They're optimistic," said Kevin Donovan, the Buffalo-area director of the United Auto Workers, referring to UAW members at the plant. "They're very confident they've done all the right things to keep themselves in the competitive mix."

http://www.buffalonews.com/editorial/20060124/1005060.asp