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Old 12-04-2005, 07:01   #1 (permalink)
Grover C. McCoury III
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Ford May Close 5 North American Plants

DETROIT (AP) -- Ford Motor Co. workers and local officials said Friday
they'll do everything in their power to keep plants open after a report
suggested Ford is considering closing five North American plants as part of
a major restructuring.
Lawmakers and union officials said they would pile on tax breaks or change
plant work rules to encourage Ford to stay. In Minnesota, House Speaker
Steve Sviggum, the Legislature's top Republican, said he wouldn't rule out
pushing for a special session to consider incentives for keeping a plant in
St. Paul.

"We're not going to let this go without a fight," he said. "We're going to
give every incentive we can to make sure these jobs are maintained."

The Wall Street Journal reported Friday that the nation's second biggest
automaker is likely to close assembly plants in St. Louis, Atlanta and St.
Paul under a still-evolving restructuring plan. It cited two unidentified
people familiar with the automaker's product plans.

The newspaper said an engine-parts plant in Windsor, Ontario, and a
truck-assembly plant in Cuautitlan, Mexico, also are slated for closure.

If Ford closes the plants, it would deal another blow to U.S. autoworkers,
already reeling from a plan announced last month by General Motors Corp. to
close 12 North American facilities and cut 30,000 jobs. The nation's car
manufacturers are suffering from declining sales, especially of sport
utility vehicles, even as the cost of labor and health care rises.

Ford shares rose 5 cents to close at $8.15 on the New York Stock Exchange on
Friday.

Together, the Ford plants cited in Friday's report employ around 7,000
people, according to Ford's Web site. Ford had a total of 122,877 North
American employees at the end of last year. The Dearborn, Mich.-based
automaker has around 324,000 employees worldwide.Ford has been struggling
with declining U.S. market share, high labor costs and excess plant
capacity. The company reported a $1.2 billion pretax loss in its North
American automotive operations in the third quarter.

Ford Chairman and CEO Bill Ford has said the company is working on a
restructuring plan and will reveal details in January. Bill Ford said in
October the plan will include "significant" job cuts and plant closures.

Ford is only using around 86 percent of its North American assembly plant
capacity, compared to 107 percent at rival Toyota Motor Corp. Ford has 23
assembly plants in North America.

"Obviously, we've indicated we will address our excess capacity," Ford
spokesman Oscar Suris told The Associated Press Friday. "We've been pretty
consistent in saying we'll share these plans in more detail in January.
Nothing is finalized."

The United Auto Workers refused to comment on the report, saying it is
speculation.

At the Ford plant in Cuautitlan, just north of Mexico City, said rumors
about downsizing have been floating around for some time, and the 750
workers there are willing to discuss labor changes to keep the plant open.

"We believe that we represent a good business opportunity for Ford," said
Juan Jose Sosa, the national representative for the Ford workers union in
Mexico. "We are open to considering reasonable alternatives ... and a better
use of labor," he said.

Danny Sparks, head of the local union at the Ford plant in Hapeville, Ga.,
near Atlanta, said the report of a possible closure came as a surprise.

"We're one of the most efficient plants Ford has. The Atlanta employees have
a long history of stepping up to the task at hand," Sparks said.

Chuck Moore, director of the Detroit-area restructuring firm Conway,
MacKenzie and Dunleavy, said the plants are the subject of speculation in
part because of the products they make.

The Atlanta plant makes the Ford Taurus sedan, which is scheduled to be
phased out next year. The St. Louis plant makes the Ford Explorer and
Mercury Mountaineer, two vehicles which have been struggling. Explorer sales
were down 30 percent in the first 11 months of this year despite an
extensive redesign, according to Autodata Corp.

The St. Paul plant makes the Ford Ranger pickup, which also saw sales fall
nearly 25 percent between January and November, and the Cuautitlan plant
makes the F-150 and Super-Duty trucks that could be consolidated elsewhere,
Moore said. Ford has four other plants that make the F-150.

GM's announcement got little reaction from Wall Street, in part because many
of the changes won't take place until after GM and the UAW negotiate a new
contract in 2007. Moore said Ford could get the same reaction unless its
restructuring plan takes effect sooner, although Ford also is locked into a
UAW contract that won't be negotiated until 2007.

Moore said Ford also has to make clear how it plans to stem its market share
losses. Ford's U.S. market share fell to 17.4 percent in the first 11 months
of the year, down from 18.4 percent the year before.

"Without stabilization of the market share, it's just going to require
additional cost cuts and additional closures," Moore said.

Yet another $.02 worth from a proud owner of a 1970 Mach 1 351C @
http://community.webshots.com/album/18644819fHAehGJAjt




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Old 12-04-2005, 10:01   #2 (permalink)
Backyard Mechanic
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time for coherent action!

"Grover C. McCoury III" <gcmccoury@yahoo.com> wrote:

> DETROIT (AP) -- Ford Motor Co. workers and local officials said Friday
> they'll do everything in their power to keep plants open after a
> report suggested Ford is considering closing five North American
> plants as part of a major restructuring.


UAW, Ford, GM and Chrysler must sit down and find a way to stop the
bleeding.

Time for UAW to establish strict workplace standards.. spend less time
defending workers from charges of drug use / dealing, more educating how
they are all in danger.

Time to kick the MBA's out of Automotive middle management and establish
"Quality as Job1 !" ethics.
- Still signs of 'quota management' in plants, which ignore rework rate

Time to figure out a way to pay into a joint benefits fund from
cars/vehicles sold.. regardless of origin.

--
Yeh, I'm a Krusty old Geezer, putting up with my 'smartass' is the price
you pay..DEAL with it!
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Old 12-04-2005, 11:01   #3 (permalink)
Pat
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Re: Ford May Close 5 North American Plants

I been buying Ford for 20 years. I took my Ranger in for a transmission
overhaul. $2000. 6 months later I had to have it done again. Another
$2000. I took my Aspire in for a head gasket. Cost $1500 and it still
needs a head gasket. I needed a new car. I watched the Ford ads for
months. Never able to buy one at the advertized price. So I bought a
Toyota. Maybe Ford should die.


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Old 12-04-2005, 11:01   #4 (permalink)
joe schmoe
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Re: Ford May Close 5 North American Plants

On Sun, 4 Dec 2005 09:53:39 -0800, "Pat" <dancing@onlinemac.removecom>
wrote:

>I been buying Ford for 20 years. I took my Ranger in for a transmission
>overhaul. $2000. 6 months later I had to have it done again. Another
>$2000. I took my Aspire in for a head gasket. Cost $1500 and it still
>needs a head gasket. I needed a new car. I watched the Ford ads for
>months. Never able to buy one at the advertized price. So I bought a
>Toyota. Maybe Ford should die.
>


I might ... agree with this (GM & Chryco too). It's time the
government figured out the cost/benefits of having the US design and
assemble it's own vehicles. US workers are too valuable to spend
their time screwing nuts onto studs. The US should be computerizing
the world that's where the money is at the moment.

Focus on the future, allow the past to die (or at least move to
China/Mexico). Subsidize the future, not the past.
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Old 12-04-2005, 12:01   #5 (permalink)
Brent P
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Re: Ford May Close 5 North American Plants

In article <11p6b93iiop2a03@corp.supernews.com>, Pat wrote:
> I been buying Ford for 20 years. I took my Ranger in for a transmission
> overhaul. $2000. 6 months later I had to have it done again. Another
> $2000. I took my Aspire in for a head gasket. Cost $1500 and it still
> needs a head gasket. I needed a new car. I watched the Ford ads for
> months. Never able to buy one at the advertized price. So I bought a
> Toyota. Maybe Ford should die.


Sounds more like your mechanic was ripping you off.


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Old 12-04-2005, 12:01   #6 (permalink)
WindsorFox
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Posts: n/a
Re: time for coherent action!

Backyard Mechanic wrote:

> Time to figure out a way to pay into a joint benefits fund from
> cars/vehicles sold.. regardless of origin.
>


And perhapse pay CEOs and such only $4 million a year instead of $8
million and make a "profit rainy day fund." Yeah I'm all for profit and
free trade and such and I am definately not a Socialist, but any mildly
intelligent person must agree that some CEO salaries are far beyond
outrageous.

--

"Usenet is like a herd of performing elephants with diarrhea -- massive,
difficult to redirect, awe-inspiring, entertaining, and a source of
mind-boggling amounts of excrement when you least expect it."

-- Gene Spafford
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Old 12-04-2005, 14:01   #7 (permalink)
fclaugus
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Posts: n/a
Re: time for coherent action!


"WindsorFox" <windsorfox@NOSPAM.cox.net> wrote in message
news:98Hkf.16758$_k3.2273@dukeread01...
> Backyard Mechanic wrote:
>
> > Time to figure out a way to pay into a joint benefits fund from
> > cars/vehicles sold.. regardless of origin.
> >

>
> And perhapse pay CEOs and such only $4 million a year instead of $8
> million and make a "profit rainy day fund." Yeah I'm all for profit and
> free trade and such and I am definately not a Socialist, but any mildly
> intelligent person must agree that some CEO salaries are far beyond
> outrageous.


CEO compensation is only outrageous when executives are rewarded for poor
performance. If they make their company billions, why shouldn't they receive
their cut ? Given a good CEO is very hard to replace. However, there are
plenty of examples of poorly performing (ceo)s making way too much.

CEO G. Richard Wagoner, Jr. of GM made $4,817,020 last year. John M. Devine
Vice Chairman and Chief Financial Officer of GM made $4,223,650. These
figures are small compared to after tax income of 2.1 billion last year.

William C. Ford, Jr. Chairman of the Board, Chief Executive Officer made
$12,185,696 in long term compensation last year (no salary or bonuses) and
$21,477,502 in options.
James J. Padilla President, Chief Operating Officer, Director; Chairman -
Automotive Operations made $7,250,625 last year (only one million in salary)
with $1,994,724 in options. Again, these are small compared to the 3.9
billion ford made last year in income after taxes.

By comparison, WMT CEO H. Lee Scott, Jr. earned $12,593,493 plus $4,537,582
in options. And John B. Menzer, Vice Chairman of the Board, earned
$5,390,386 plus $5,630,359 in options. One could argue that these figures
are fair, considering Wal-Mart made 10.5 billion after taxes last year.

Here are the top 10 highest paid (CEO)s. First colunm is this year's
compensation in thousands, and the second column is compensation over the
last five years.

1 Terry S Semel Yahoo 230,554 258,291
2 Barry Diller IAC/InterActiveCorp 156,168 239,846
3 William W McGuire UnitedHealth Group 124,774 342,284
4 Howard Solomon Forest Labs 92,116 294,895
5 George David United Technologies 88,712 210,793
6 Lew Frankfort Coach 86,481 154,087
7 Edwin M Crawford Caremark Rx 77,864 93,563
8 Ray R Irani Occidental Petroleum 64,136 127,447
9 Angelo R Mozilo Countrywide Financial 56,956 96,914
10 Richard D Fairbank Capital One Financial 56,660 226,268



It's also interesting to note that Ellison of Oracle made ovre 867 million
over the last five years!!

Here are the wost performing CEOs : Notice the high compensation despite the
negative return.

Peter Cartwright Calpine
Tenure: 21 years
Annualized return during tenure: 4%*
Relative to S&P: 96
6-year annualized return: -7%
6-year average compensation: $13.0 million

Steven R. Appleton Micron Technology
Tenure: 11 years
Annualized return during tenure: 1%
Relative to S&P: 91
6-year annualized return: -13%
6-year average compensation: 9.3 million

Thomas A. Renyi Bank of New York
Tenure: 8 years
Annualized return during tenure: 6%
Relative to S&P: 100
6-year annualized return: -2%
6-year average compensation: 13.8 million

Martin G. McGuinn Mellon Finl
Tenure: 6 years
Annualized return during tenure: -1%
Relative to S&P: 98
6-year annualized return: -2%
6-year average compensation: 5.5 million

Lee R. Raymond ExxonMobil
Tenure: 12 years
Annualized return during tenure: 15%
Relative to S&P: 104
6-year annualized return: 11%
6-year average compensation: 22.8 million

Data found at www.forbes.com and www.wsj.com



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Old 12-04-2005, 16:01   #8 (permalink)
Spike
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Posts: n/a
Re: time for coherent action!

On Sun, 04 Dec 2005 13:08:48 -0600, WindsorFox
<windsorfox@NOSPAM.cox.net> wrote:

>Backyard Mechanic wrote:
>
>> Time to figure out a way to pay into a joint benefits fund from
>> cars/vehicles sold.. regardless of origin.
>>

>
> And perhapse pay CEOs and such only $4 million a year instead of $8
>million and make a "profit rainy day fund." Yeah I'm all for profit and
>free trade and such and I am definately not a Socialist, but any mildly
>intelligent person must agree that some CEO salaries are far beyond
>outrageous.

"SOME"???????? It's like sports, and Hollywood. How much does one
person need? The president, no matter what party, can wipe out the
world with the push of a button, or not... and get's $400K (I think
that's what it was raised to). A sports figure gets millions for
playing a game, and there are a very many others who would gladly play
for less if given the chance. Union workers get a decent wage, but
union leaders rake in millions... to do what? How much does it take to
say "strike"? And CEOs not only get their multi-million dollar
salaries, but, get that Golden Umbrella even if the corporation loses
money and they get sent packing years before their contract ends.
There doesn't have to be an equal balance, but there really should be
a bit more parity.
--

Spike
1965 Ford Mustang Fastback 2+2, Vintage Burgundy
w/Black Std Interior, A Code 289 C4 Trac-Lok;
Vintage 40 16" rims w/225/50ZR16 KDWS BF Goodrich
gForce Radial T/As, Cobra drop; surround sound
audio-video...
See my ride at....
Feb 2004- http://207.36.208.198/albums/86810/003_May_21_3004.jpg
Feb 2004- http://207.36.208.198/albums/86810/005_May_21_2004.jpg
Jul 2005- http://207.36.208.198/albums/86810/d..._11_05_002.jpg
Jul 2005- http://207.36.208.198/albums/86810/E...ebuild_006.jpg
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Old 12-04-2005, 17:01   #9 (permalink)
Michael Johnson, PE
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Posts: n/a
Re: time for coherent action!

Backyard Mechanic wrote:
> "Grover C. McCoury III" <gcmccoury@yahoo.com> wrote:
>
>> DETROIT (AP) -- Ford Motor Co. workers and local officials said Friday
>> they'll do everything in their power to keep plants open after a
>> report suggested Ford is considering closing five North American
>> plants as part of a major restructuring.

>
> UAW, Ford, GM and Chrysler must sit down and find a way to stop the
> bleeding.
>
> Time for UAW to establish strict workplace standards.. spend less time
> defending workers from charges of drug use / dealing, more educating how
> they are all in danger.
>
> Time to kick the MBA's out of Automotive middle management and establish
> "Quality as Job1 !" ethics.
> - Still signs of 'quota management' in plants, which ignore rework rate
>
> Time to figure out a way to pay into a joint benefits fund from
> cars/vehicles sold.. regardless of origin.


I'm not so sure they can do anything to stop their decline. They are
likely in a no-win scenario. If they become more efficient then they
will need fewer workers (i.e. layoffs required) or if they are paid more
then the cost of domestic cars won't be competitive with foreign
competition. It is ever more affordable goods and services that support
our relatively high standard of living. We all make choices every day
that cost someone a domestic job somewhere. Whether it be a car,
underware, toothpaste, a wrench etc. we all usually choose the least
expensive item that gets the job done. Same goes for businesses. If
everyone decided to buy nothing but domestically made goods from
tomorrow forward we would all have less disposable income and many goods
we would have to do without because they are no longer made here in the
USA. This, in turn, would effect the overall health of our ecomony and
standard of living.

IMO, the USA's work force is returning to a state that puts more
responsibility on the individual for their economic well being. There
are plenty of jobs available but not enough qualified people to fill
them. Today too many people see a college education as optional and
jobs that require good math and technical skills as too much of a hassle
to get qualified to fill. People that refuse to educate themselves and
work to become skilled in a technical field will suffer the economic
consequences. The days of making $40/hour to spray paint bumpers are
rapidly fading. Just like buggy whip makers had to reinvent themselves
a 100 years ago so do many workers today. IMO, it is the flexibility to
reinvent ourselves when needed that really gives us a great economic
advantage over many other countries. It is good that we let the market
determine employment needs and not let markets be overly influenced by
government control. We have some good examples over the last 100 years
(i.e. Socialism, Communism) that show that too much government control
is a very bad thing.
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Old 12-04-2005, 18:01   #10 (permalink)
Michael Johnson, PE
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Re: Ford May Close 5 North American Plants

joe schmoe wrote:
> On Sun, 4 Dec 2005 09:53:39 -0800, "Pat" <dancing@onlinemac.removecom>
> wrote:
>
>> I been buying Ford for 20 years. I took my Ranger in for a transmission
>> overhaul. $2000. 6 months later I had to have it done again. Another
>> $2000. I took my Aspire in for a head gasket. Cost $1500 and it still
>> needs a head gasket. I needed a new car. I watched the Ford ads for
>> months. Never able to buy one at the advertized price. So I bought a
>> Toyota. Maybe Ford should die.
>>

>
> I might ... agree with this (GM & Chryco too). It's time the
> government figured out the cost/benefits of having the US design and
> assemble it's own vehicles. US workers are too valuable to spend
> their time screwing nuts onto studs. The US should be computerizing
> the world that's where the money is at the moment.
>
> Focus on the future, allow the past to die (or at least move to
> China/Mexico). Subsidize the future, not the past.


Very good points, IMO.
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