Ford will announce layoffs tomorrow, maybe up to 25,000 people:

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060122/AUTO01/601220408

'The Way Forward' could be the way to the unemployment office for quite a few folks. I don't work at Ford, but I do work in the auto industry. I think it sucks, but they're paying for poor past decisions and this may be the only way to keep Ford alive. What do you all think?

 

Quote:
"Ford's union contracts limited its ability to trim manufacturing operations to match its greatly reduced market share"

Then whoever allowed the labor union to attain such power is at fault. How can workers expect to continue employment when there is nothing to build? And why would management allow such a labor agreement? It is just plain stupid!

I cannot understand how a company that sells 900,000 F series trucks avg $30,000 or more apiece be on the skids? It boggles my mind.

 

I think you're pretty much dead on. Much of this mess has to do with corporate greed with their tens of millions of dollar "bonuses," making unsustainable concessions for the unions, and poor quality control. The rocky launches of the Focus and Escape, and now the F150 trucks do not enamor a public that is not willing to tolerate being guinea pigs for new products. I like alot of the products currently being released - the 500, Fusion, F150, Mustang, etc. However, the domestic auto industry as a whole seems to rush new designs to production, and then deals with what breaks after the fact. When you have companies like Honda and Toyota, wich consistently release updated products on a 4 year cycle, and does this without needing 1 or 2 years AFTER launch to get it right, Ford and GM BOTH need to get their acts together. If they don't, then we'll become like England, who no longer has any locally owned vehicle production.

 

It takes alot more than selling $27,000,000 worth of trucks to pay all of those salaries, R&D, and materials costs. I sat in a Ford Focus once. It took me all of 1 second to go into sever back spasms due to the shape of those seats. My FEH isn't really all that much better as it lacks any inkling of lower back support. Not to mention, my FEH dashboard has that cheap hard plastic better fitting of a Kia Rio, than a $30k vehicle. Don't get me wrong, I really like my Escape, but I see plenty of reasons why the imports continue to whip the domestics in sales. Little things that add to the perception of quality of workmanship, as well as not having to go back to the shop for warranty work after the sale make a big difference. The 500 and the Fusion are both starts in that direction, but time will be the only thing that will tell if Ford has learned anything from the Focus and Escape product launches regarding rushing incomplete products to market.

 

Ford and Chevy are both hurting right now. Its been all bad news lately, the last two truely american brands. Ford is discontinuing a lot of old dead models, (Taurus and Expedition to name a few) coming out with some nice new rides. I like the Fusion, and with that nice 3L engine, that thing will scoot. When your not number one, two, or three in car sales, you've got to do something. Ford will never go under, or chevy for that matter. I don't think the government would let it happen. Fords having some serious competition with the introduction of two new full sized truck models that weren't there before. Its the Ralph Nader effect, even if the competition isn't going to kill you, they might bleed you just enough that your major competition can go for the kill shot. I'm not going to say how bad things are until the news is officially out tommorow.


I really worry for all of the auto workers out there

 

well i for one can't wait to see what happens, but of course thats because i am one of the 87,000 United Auto Workers. I work at a plant in batavia ohio. We make the CD4E and CVT Trannys. There are talks around out plant that it is one on the chopping block and such, but only bill ford knows what will happen.

Also they are going to be showing the news event in every single ford plant tomorrow for the workers to watch and see what happens.

But of course the jobs wont go away till 07 or the UAW will have to ok it..

 

http://www.detnews.com/apps/pbcs.dll...TO01/601220408

Interestring read.

 

And another:
http://www.time.com/time/magazine/ar...151787,00.html

 

I think Bill Ford commands way more respect and trust when he speaks to the rank and file of FMC than Gene Lutz does when he says sometning to GM's employees.What gets me is the fancy tailored suits and shirts and silk ties these Car company execs wear. Gotta cost in the low 4 figures. That reeks of excess to me.

 

I hope to God it means better vehicles all around. Trucks alone won't carry the company.

 

Ford Down-sizing. 25,000-30,000 jobs cut, up to 14 plants shut down.


http://today.reuters.com/news/newsar...ING.xml&rpc=22

 

This is going to hit the Atlanta area very hard. My next-door neighbor has worked at the Hapeville plant for 20+ years. My brother-in laws parents both work at the Hapeville plant as well. They both have 15+ years. I could probably name another dozen people that I know or live near that work at the Hapeville Taurus plant.

According to the AJC, Ford is the #1 tax payer to the city of Hapeville (suburb of Atlanta). The plant is across the street to the original Chick-fil-A restaurant that Truett Cathy opened 30 years ago. Their customer base in 50% Ford during the lunch-hour. This location also stays open 24hrs I believe to feed the night crews as well. The other large employer in Hapeville is Delta Airlines and we know how thats going right now. Additionally, on the Northside of Atlanta, GM is closing their Doraville plant that produces minivans.
Scheeeeeesh.

 

Ford made something like $2Billion last year overseas and lost a similar amount here in North America. How can they make cars that people in other countries want, but, for the most part, not here? F-series and Mustang are not enough. There was a hole big enough to drive a million Accords and Camrys thru when Ford stopped offering a mid-sized car in this market.

In real estate, its LOCATION LOCATION LOCATION. In manufacturing its PRODUCT PRODUCT PRODUCT. You cannot shrink your way to success, you have to figure out how to build what people want.

Jim

 

A cheap suit and a polyester tie would not instill confidence in me.
Dono

 

I think Ford needs to sell off Land Rover and some of the other companies.