Ford job cuts expected.
DVSNCYNIKL
01-11-2002, 09:41 AM
No. 2 automaker expected to idle several plants, cuts dividend.
NEW YORK (CNN/Money) - Ford Motor Co. cut its dividend for the second time in a year and is expected to cut up to 20,000 jobs Friday in a widely anticipated restructuring plan meant to slash costs and boost profits at the No. 2 automaker.
Ford announced its dividend will be 10 cents a quarter on its widely-traded Class B stock, down from 15 cents recently and from 30 cents it paid a year ago.
The company also is expected to announce it will idle several assembly plants. The national contract with the United Auto Workers union does not permit outright plant closings before 2003.
Ford has been struggling with industry overcapacity, restrictive labor contracts and an industry incentive war that have attracted buyers but helped cause rising losses at the company Ford's involvement in the Firestone tire recall also has raised questions about quality.
The company could cut as many as 12,000 union jobs and 8,000 salaried positions, after big cuts were announced recently by General Motors Corp. (GM: Research, Estimates) and DaimlerChrysler (DCX: Research, Estimates).
In addition, a person familiar with the situation said CEO William Clay Ford will not take a salary this year.
A Ford spokesman declined to comment on job cuts, production cutbacks or this year's salary for Ford, great grandson of company founder Henry Ford.
Wall Street has been expecting a broad restructuring plan for weeks after Ford said it would unveil one this month. Ford has cut jobs and idled or slowed production at several plants in the interim as its profits continued to slide.
Ford already has ended matching contributions to its salaried staff's 401(k) retirement plans as well as increasing health insurance premiums.
Just my .02, although I'm not a Ford fan, I can't help but feel bad for the workers who have to suffer at the expense of big wigs who feel the need to cut corners at the expense of making a profit.
NEW YORK (CNN/Money) - Ford Motor Co. cut its dividend for the second time in a year and is expected to cut up to 20,000 jobs Friday in a widely anticipated restructuring plan meant to slash costs and boost profits at the No. 2 automaker.
Ford announced its dividend will be 10 cents a quarter on its widely-traded Class B stock, down from 15 cents recently and from 30 cents it paid a year ago.
The company also is expected to announce it will idle several assembly plants. The national contract with the United Auto Workers union does not permit outright plant closings before 2003.
Ford has been struggling with industry overcapacity, restrictive labor contracts and an industry incentive war that have attracted buyers but helped cause rising losses at the company Ford's involvement in the Firestone tire recall also has raised questions about quality.
The company could cut as many as 12,000 union jobs and 8,000 salaried positions, after big cuts were announced recently by General Motors Corp. (GM: Research, Estimates) and DaimlerChrysler (DCX: Research, Estimates).
In addition, a person familiar with the situation said CEO William Clay Ford will not take a salary this year.
A Ford spokesman declined to comment on job cuts, production cutbacks or this year's salary for Ford, great grandson of company founder Henry Ford.
Wall Street has been expecting a broad restructuring plan for weeks after Ford said it would unveil one this month. Ford has cut jobs and idled or slowed production at several plants in the interim as its profits continued to slide.
Ford already has ended matching contributions to its salaried staff's 401(k) retirement plans as well as increasing health insurance premiums.
Just my .02, although I'm not a Ford fan, I can't help but feel bad for the workers who have to suffer at the expense of big wigs who feel the need to cut corners at the expense of making a profit.
DVSNCYNIKL
01-11-2002, 01:23 PM
Even more news. This is actually more specific.
DETROIT (Reuters) - Ford Motor Co. (F.N) said on Friday it would cut 35,000 jobs worldwide -- 22,000 of them in North America -- and close three assembly plants in North America.
Ford Chief Operating Officer Nick Scheele said the world's second-largest automaker would close assembly plants in Edison, New Jersey; Hazelwood, Missouri; and Oakville, Ontario. The Canadian and New Jersey plants build pickups, while the Missouri plant builds the Ford Explorer sport utility vehicle.
Scheele also said Ford would close two parts plants in Cleveland, Ohio, and Dearborn, Michigan. In addition, 11 plants will undergo major restructuring, including shift cuts, with production cuts at nine additional plants.
The cuts come as part of an overhaul of the company aimed at improving profits by $9 billion by the middle of the decade. Ford said it would take an after-tax charge of about $4.1 billion in the fourth quarter of 2001 in the restructuring drive.
It said it would cut North American production capacity by 16 percent, to 4.8 million vehicles from 5.7 million vehicles, and cut four vehicles -- the Ford Escort, the Mercury Cougar, the Mercury Villager and the Lincoln Continental -- from its lineup.
DETROIT (Reuters) - Ford Motor Co. (F.N) said on Friday it would cut 35,000 jobs worldwide -- 22,000 of them in North America -- and close three assembly plants in North America.
Ford Chief Operating Officer Nick Scheele said the world's second-largest automaker would close assembly plants in Edison, New Jersey; Hazelwood, Missouri; and Oakville, Ontario. The Canadian and New Jersey plants build pickups, while the Missouri plant builds the Ford Explorer sport utility vehicle.
Scheele also said Ford would close two parts plants in Cleveland, Ohio, and Dearborn, Michigan. In addition, 11 plants will undergo major restructuring, including shift cuts, with production cuts at nine additional plants.
The cuts come as part of an overhaul of the company aimed at improving profits by $9 billion by the middle of the decade. Ford said it would take an after-tax charge of about $4.1 billion in the fourth quarter of 2001 in the restructuring drive.
It said it would cut North American production capacity by 16 percent, to 4.8 million vehicles from 5.7 million vehicles, and cut four vehicles -- the Ford Escort, the Mercury Cougar, the Mercury Villager and the Lincoln Continental -- from its lineup.
focalBlur
01-11-2002, 05:21 PM
so to sum it up:
close 4 plants
Vulcan Forge
Avon Lake
Edison, N.J
Ontario truck
drop 4 cars:
Cougar
Escort
Continental
Villager
It's too bad to see the Cougar be dropped it was a very sweet looking car.
DEARBORN, Mich., Jan. 11 – Ford Motor Company [NYSE:F] today announced several restructuring actions as part of its Ford Revitalization Plan, a product-focused program designed to strengthen its position in the marketplace and improve its financial results. These actions will enhance the company’s ability to produce the highest level of quality cars and trucks while reducing the cost structure.
"Our revitalization plan is based on executing the fundamentals of our business to build great products," said Chairman and Chief Executive Officer Bill Ford. "What we are outlining today is a comprehensive plan that builds for the future. It's going to take everyone in the extended Ford family – employees, suppliers and dealers – working together, over time, to make it work."
The actions announced today include:
New products: A product-led revitalization program which will lead to the introduction of 20 new or freshened products in the U.S. annually between now and mid-decade.
Plant capacity: Reduction of North American plant manufacturing operating capacity by about one million units by mid-decade to realign capacity with market conditions.
Hourly workforce: About 12,000 hourly employees in North America are affected by the actions completed in December or to be taken throughout 2002 and beyond. An additional 3,000 hourly employees were affected in 2001. Plans are being made to reassign as many plant employees as possible.
Salaried workforce: Last year's voluntary separation program for salaried employees and other related actions resulted in a 3,500-person workforce reduction in North America. This program will be extended to achieve an additional 1,500-person salaried workforce reduction to reach the goal of 5,000. If necessary to meet this goal, an involuntary separation program will be used.
Global workforce: About 35,000 employees will be or already have been affected by combined actions around the world since January 2001. These include 21,500 in North America -- 15,000 hourly, 5,000 salaried and 1,500 agency employees -- and 13,500 in the rest of the world.
Material costs: A material cost-reduction program has been initiated with North American suppliers which shares design savings, with Ford receiving 65 percent of implemented cost reductions and suppliers receiving 35 percent in the first year. Designs will be developed that will help improve Ford's products and overall quality. This program, along with other material cost reduction efforts, is expected to improve ongoing annual profits before taxes by $3 billion by mid-decade.
Discontinued low-margins models: The Mercury Cougar, Mercury Villager, Lincoln Continental and Ford Escort will be discontinued this year.
Beyond North America: Revitalization plans beyond North American automotive operations include the continued implementation of the European Transformation Strategy, the Premier Automotive Group strategy, the turnaround in South America and a revised direction for Ford Financial.
Divestitures: Ford is pursuing the sale of non-core assets and businesses. Ford’s plans include $1 billion of cash realization from these actions in 2002.
Dividend: The annual common stock and Class B stock dividend will be reduced from 60 cents a share to 40 cents.
These actions and those already taken are expected to improve pre-tax operating results to $7 billion annually, an improvement of $9 billion by the middle of the decade. As part of the restructuring, the company will take an after-tax charge to fourth quarter earnings of $4.1 billion. The charge will cover several items, including asset impairments and personnel costs.
Today's announcement is part of an ongoing series of steps the company has taken over the past few months and will take in the future to restructure its business. Those taken earlier include the consolidation of car and truck product development in North America, a 50 percent dividend reduction, a 7 percent pay reduction to contract labor firms, a voluntary separation program for North American salaried employees, the elimination of bonuses and raises for senior managers, a sharing of health care costs with U.S. salaried employees and retirees, and the elimination of the company match for U.S. salaried employee 401(k) plans.
"Although the actions we're outlining today are difficult, they are necessary steps to lead Ford back to a strong financial and competitive position," said Nick Scheele, president and chief operating officer. "They will help us to address our problems, while at the same time permitting us to keep a sharp focus on delivering great products. Quality and value will be the hallmarks of our cars and trucks."
PLANT ACTIONS
Manufacturing plans over the next several years include: 1) Closing five plants: Edison Assembly, Ontario Truck Plant, St. Louis Assembly, Cleveland Aluminum Casting and Vulcan Forge; 2) No new products have been identified for two plants: Ohio Assembly and Cuautitlan Assembly, 3) Pursuing the sale of Woodhaven Forging Plant, 4) Major downsizing and shift reductions at 11 plants; and 5) Line speed reductions and changes to operating patterns at nine plants.
"In order to remain competitive and profitable, we must make some hard decisions to align capacity with our anticipated sales," said Scheele. "At the same time, the company is continuing its commitment to North American manufacturing operations with investments of about $20 billion over the next five years in new product programs and spending to add flexibility and increase our ability to respond quickly to changes in market demand."
FINANCIAL MILESTONES
In addition, the company today announced the following 2002 financial milestones:
Restructuring Priorities Milestones
Communicate/implement plans Report on progress
Quality (U.S.) Improve J.D. Power Initial Quality Survey
Capacity utilization (North America) Improve by 10 percent
Non-product related cost Reduce by $2 billion
Divest non-core operations $1 billion cash realization
Financial Results Milestones
Pre-tax operating earnings Positive
Capital spending $7 billion
Europe Improve results
South America Improve results
"We are confident we can achieve these goals through the efforts of our dedicated employee team," Bill Ford said. "We know we have immediate challenges to face. It will be difficult, and in some cases, painful to turn things around. But we will turn things around."
Final results of the 2001 milestones will be announced when Ford releases its fourth quarter and full-year 2001 financial results on Jan. 17.
Ford Motor Company is the world's second largest automaker, selling vehicles in 200 markets and with approximately 345,000 employees on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Financial, Hertz and Quality Care
close 4 plants
Vulcan Forge
Avon Lake
Edison, N.J
Ontario truck
drop 4 cars:
Cougar
Escort
Continental
Villager
It's too bad to see the Cougar be dropped it was a very sweet looking car.
DEARBORN, Mich., Jan. 11 – Ford Motor Company [NYSE:F] today announced several restructuring actions as part of its Ford Revitalization Plan, a product-focused program designed to strengthen its position in the marketplace and improve its financial results. These actions will enhance the company’s ability to produce the highest level of quality cars and trucks while reducing the cost structure.
"Our revitalization plan is based on executing the fundamentals of our business to build great products," said Chairman and Chief Executive Officer Bill Ford. "What we are outlining today is a comprehensive plan that builds for the future. It's going to take everyone in the extended Ford family – employees, suppliers and dealers – working together, over time, to make it work."
The actions announced today include:
New products: A product-led revitalization program which will lead to the introduction of 20 new or freshened products in the U.S. annually between now and mid-decade.
Plant capacity: Reduction of North American plant manufacturing operating capacity by about one million units by mid-decade to realign capacity with market conditions.
Hourly workforce: About 12,000 hourly employees in North America are affected by the actions completed in December or to be taken throughout 2002 and beyond. An additional 3,000 hourly employees were affected in 2001. Plans are being made to reassign as many plant employees as possible.
Salaried workforce: Last year's voluntary separation program for salaried employees and other related actions resulted in a 3,500-person workforce reduction in North America. This program will be extended to achieve an additional 1,500-person salaried workforce reduction to reach the goal of 5,000. If necessary to meet this goal, an involuntary separation program will be used.
Global workforce: About 35,000 employees will be or already have been affected by combined actions around the world since January 2001. These include 21,500 in North America -- 15,000 hourly, 5,000 salaried and 1,500 agency employees -- and 13,500 in the rest of the world.
Material costs: A material cost-reduction program has been initiated with North American suppliers which shares design savings, with Ford receiving 65 percent of implemented cost reductions and suppliers receiving 35 percent in the first year. Designs will be developed that will help improve Ford's products and overall quality. This program, along with other material cost reduction efforts, is expected to improve ongoing annual profits before taxes by $3 billion by mid-decade.
Discontinued low-margins models: The Mercury Cougar, Mercury Villager, Lincoln Continental and Ford Escort will be discontinued this year.
Beyond North America: Revitalization plans beyond North American automotive operations include the continued implementation of the European Transformation Strategy, the Premier Automotive Group strategy, the turnaround in South America and a revised direction for Ford Financial.
Divestitures: Ford is pursuing the sale of non-core assets and businesses. Ford’s plans include $1 billion of cash realization from these actions in 2002.
Dividend: The annual common stock and Class B stock dividend will be reduced from 60 cents a share to 40 cents.
These actions and those already taken are expected to improve pre-tax operating results to $7 billion annually, an improvement of $9 billion by the middle of the decade. As part of the restructuring, the company will take an after-tax charge to fourth quarter earnings of $4.1 billion. The charge will cover several items, including asset impairments and personnel costs.
Today's announcement is part of an ongoing series of steps the company has taken over the past few months and will take in the future to restructure its business. Those taken earlier include the consolidation of car and truck product development in North America, a 50 percent dividend reduction, a 7 percent pay reduction to contract labor firms, a voluntary separation program for North American salaried employees, the elimination of bonuses and raises for senior managers, a sharing of health care costs with U.S. salaried employees and retirees, and the elimination of the company match for U.S. salaried employee 401(k) plans.
"Although the actions we're outlining today are difficult, they are necessary steps to lead Ford back to a strong financial and competitive position," said Nick Scheele, president and chief operating officer. "They will help us to address our problems, while at the same time permitting us to keep a sharp focus on delivering great products. Quality and value will be the hallmarks of our cars and trucks."
PLANT ACTIONS
Manufacturing plans over the next several years include: 1) Closing five plants: Edison Assembly, Ontario Truck Plant, St. Louis Assembly, Cleveland Aluminum Casting and Vulcan Forge; 2) No new products have been identified for two plants: Ohio Assembly and Cuautitlan Assembly, 3) Pursuing the sale of Woodhaven Forging Plant, 4) Major downsizing and shift reductions at 11 plants; and 5) Line speed reductions and changes to operating patterns at nine plants.
"In order to remain competitive and profitable, we must make some hard decisions to align capacity with our anticipated sales," said Scheele. "At the same time, the company is continuing its commitment to North American manufacturing operations with investments of about $20 billion over the next five years in new product programs and spending to add flexibility and increase our ability to respond quickly to changes in market demand."
FINANCIAL MILESTONES
In addition, the company today announced the following 2002 financial milestones:
Restructuring Priorities Milestones
Communicate/implement plans Report on progress
Quality (U.S.) Improve J.D. Power Initial Quality Survey
Capacity utilization (North America) Improve by 10 percent
Non-product related cost Reduce by $2 billion
Divest non-core operations $1 billion cash realization
Financial Results Milestones
Pre-tax operating earnings Positive
Capital spending $7 billion
Europe Improve results
South America Improve results
"We are confident we can achieve these goals through the efforts of our dedicated employee team," Bill Ford said. "We know we have immediate challenges to face. It will be difficult, and in some cases, painful to turn things around. But we will turn things around."
Final results of the 2001 milestones will be announced when Ford releases its fourth quarter and full-year 2001 financial results on Jan. 17.
Ford Motor Company is the world's second largest automaker, selling vehicles in 200 markets and with approximately 345,000 employees on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Financial, Hertz and Quality Care
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