US:Ford's board expected to review restructuring plan - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
Ford Forum Ford Forum

» Auto Insurance
» Featured Product
ยป Wheel & Tire Center

Go Back   Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News
Register Home Forum Active Topics Photo Gallery Auto Loans Garage Mark Forums Read Auto Escrow

FordForums.com is the premier Ford Forum on the internet. Registered Users do not see the above ads.
Reply
 
LinkBack Thread Tools Display Modes
Old 12-05-2005, 18:39   #1 (permalink)
Registered User
 
Stacy94PGT's Avatar
 
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
US:Ford's board expected to review restructuring plan

Ford's board expected to review restructuring plan

Reuters

DETROIT (Reuters) -- Ford Motor Co.'s board this week is expected to review parts of a restructuring plan that aims to revive the automaker's ailing North American vehicle operations, a source familiar with the situation said on Monday.

The No. 2 automaker has said it would unveil in January a turnaround plan for its largest market, dubbed "Way Forward," which Chief Executive Bill Ford Jr. has said would include "significant plant closings."

Ford's board of directors will begin a two-day meeting on Wednesday.

The turnaround plan will likely contain the shuttering of at least four assembly plants and a dozen parts facilities in the region, said David Cole, chairman of the Ann Arbor, Michigan-based Center for Automotive Research.

"It's matter of very high urgency that they do this," Cole said. "They desperately need to contract the size of the company."

Ford's executive vice president in charge of its Americas operations Mark Fields -- who is drafting the strategy along with the Chief Operating Officer of Americas Anne Stevens -- told employees on Friday in an e-mail that the restructuring plan is not yet final.

The "Way Forward" plan will also include strategies to increase the appeal of Ford brands and strengthen the automaker's product line-up, Fields said in an earlier e-mail to employees.

"The plan is in development," said Ford spokesman Oscar Suris, reiterating that it will be announced in January.

He declined to comment on the board's agenda.

Like General Motors, Ford has seen its margins squeezed by soaring health-care and raw material costs, and a decline in U.S. market share. So far this year, Ford's North American unit has lost over $1.4 billion before taxes.

Ford's U.S. sales have fallen in all but two of the last 18 months. The company's sales fell 18 percent in November.

GM said in November that it would cut 30,000 jobs through 2008 and close 12 facilities to reduce excess capacity.

Ford said last month it planned to eliminate 4,000 salaried jobs, or 10 percent of its North American white-collar work force, as part of the plan.

The assembly plants that are likely to be shuttered by Ford are the facilities in St. Louis; Atlanta; St. Paul, Minnesota; and Cuatitlan, Mexico, Cole said.

The company's Atlanta plant makes the Taurus sedan, slated to be phased out in early 2006. No new products have been announced for that plant.

Ford's St. Louis assembly plant, which makes the Explorer and Mountaineer SUVs, is down to one shift.

Ford launched a multiyear restructuring program in 2002 that included 35,000 job cuts, seven North American plant closings and elimination of unprofitable models.

"Cost cutting alone won't return North American automotive operations to profitability," GimmeCredit analyst Craig Hutson said in a note on Monday.

"Ford must design and manufacture vehicles that consumers want to purchase without huge incentives," Hutson said.
__________________
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.....
Stacy94PGT is offline   Reply With Quote
Sponsored Links
Advertisement
 
Reply

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Powered by vBadvanced CMPS v3.2.2

All times are GMT -7. The time now is 23:32.



Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.