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Re: Ford Credit is closing the remaining 60 branches
Ford cuts costs at real estate, credit units
Automaker also plans to outsource part of Ford Land, close 60 Ford Credit branch offices.
Bryce G. Hoffman / The Detroit News
Ford Land
Manages Ford real estate and facilities worldwide
U.S. employees: 180
What's new: Ford plans to outsource part of Ford Land's operations to Trammell Crow Co.
Ford Credit
Ford's aumotive lending arm
U.S. employees: 8,000
What's new: Consolidate 60 branch offices into 6 regional centers
Source: Ford Motor Co., staff
DEARBORN -- Ford Motor Co. is moving to outsource part of its Ford Land division operations and plans to close 60 Ford Credit branch offices and eliminate some 1,500 Ford Credit jobs as part of its ongoing North American restructuring effort.
The automaker is negotiating with the Trammell Crow Co. to take over some aspects of Ford Land's operations, including construction and maintenance. The details of that agreement are still not final, but Ford spokeswoman Marcey Evans confirmed Monday that Ford has been in talks with the global real estate management company since June.
"The overall goal is to look at ways to improve efficiency while cutting costs," Evans said, stressing that only part of Ford Land's operations will be outsourced. "The contract has not yet been signed."
Until it is, she said, Ford would not discuss which aspects of its Ford Land operations are being outsourced.
Trammell Crow representatives did not respond to inquiries.
Also on Monday, Ford sources confirmed a report by Automotive News that Ford Credit plans to close approximately 60 branch offices across the U.S. and consolidate those operations in six existing regional centers.
While most employees who work directly with dealers will stay in their current locations and work out of home offices, other branch staff will have to transfer to one of the regional centers. The magazine said that consolidation, combined with other cost-cutting moves, is expected to eliminate about 1,500 jobs -- that on top of the 10,000 salaried positions Ford plans to cut from its U.S. automotive business by the end of next year.
Ford is struggling to rein in costs as it braces for what could be one of its biggest annual losses ever.
Ford's North American automotive operations stand to lose more than $6 billion this year, and its sales and market share continue to wither in the face of foreign competition.
Earlier this month, the automaker announced a sweeping restructuring plan that aims to trim $5 billion in operating expenses over the next several years.
Job cuts are a big part of that strategy.
Ford Credit is scheduled to discuss the consolidation with employees on Wednesday.
The moves are the latest in a series of consolidation actions at Ford's automotive lending subsidiary.
Ford Credit already has cut approximately 6,000 jobs and eliminated more than 100 branch offices since the end of 2002.
Buyout packages offered
At Ford Land, which employs 180 salaried workers, managers met with employees last Tuesday to discuss the outsourcing agreement with Trammell Crow. With only a few exceptions, Ford Land employees who are eligible for retirement will be offered buyout packages. Some workers may be able to transfer to Trammell Crowe.
Ford will try to find other positions at the company for those who don't want to transfer or take buyouts.
Bruce Roberts, a construction worker at Ford's research and engineering complex, said he and his co-workers were told buyouts would be offered to all Ford Land employees in their group.
"Everybody's up in arms. Nobody knows what to do," said Roberts, 56, who has worked at Ford for 34 years. Ford Land was established in 1970 to manage the development of the Fairlane Town Center. It is responsible for managing the automaker's real estate, construction, energy and facilities worldwide.
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Stacy94PGT
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.....
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