Re: U.S.A.:Ford to shut 2 plants this year, 1 in 2004's first quarter
Ford sets timetable for U.S. plant closings
Reuters / October 02, 2003
DETROIT (Reuters) -- Ford Motor Co. will close three U.S. plants over the next six months and a fourth U.S. plant by 2007 under its contract with the UAW, company officials said Thursday.
Ford had announced in 2002 three plant closings, and the union had told its members last week about the fourth plant, but Ford had not set a timetable for the closings.
Ford said the UAW contract it signed Tuesday allows it to meet the goals of its turnaround plan to cut North American capacity by 1 million vehicles, likely shedding about 12,000 hourly jobs.
"Our new four-year agreement is a good one," said Dennis Cirbes, Ford's vice president for employee relations and Ford's main contract bargainer with the UAW.
Ford had previously announced it was closing two parts plants, in Michigan and in Ohio, and an assembly plant in New Jersey. Under the contract, the UAW saved an assembly plant in Missouri but had to allow another assembly plant in Ohio to close instead.
The two parts plants will close by year end, while the New Jersey plant will close by March 2004. Ford said it will close the Ohio assembly plant by 2007.
The company said some of the contract's costs -- such as a $3,000 signing bonus for UAW members -- would be accounted for as a one-time charge to third-quarter earnings. Ford is expected to post a loss of 13 cents a share in the third quarter, according to analysts surveyed by Reuters Research, a unit of Reuters Group PLC.
In the past few days, Ford has announced some 7,700 job cuts around the world, including 3,000 hourly workers in Belgium, 3,000 salaried and vacant jobs in North America and 1,700 jobs in Germany.
The cuts are part of a drive at Ford to meet its profit forecasts despite higher-than-expected costs from Detroit's price wars.
Mostly because of incentives now averaging roughly $3,700 a vehicle sold in the United States, Ford already has been raises its cost-cutting target for this year to $2.5 billion just to hit its earnings estimate of 70 cents a share, or roughly $1.3 billion.
Through June, Ford had cut $1.9 billion, through reducing the cost of building current models and lowering its estimates for future warranty repairs. In July, it said it would cut salaried worker costs 10 percent by year end, through every method possible, including job cuts.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....