Ford announcement affects thousands, devastates families, communities.
Ford Motor Co., the nation's second-largest automaker, said today that it will cut 25,000 to 30,000 jobs and idle 14 facilities by 2012 as part of a restructuring designed to reverse a $1.6 billion loss last year in its North American operations.Whatever forces are at work in the global market, it is most definitely devastating to American workers. Could anything be done to prevent the continued "downsizing" that have put hundreds of thousands of workers into the streets? At least Ford didn't do this just before Christmas like corporations usually seem to do.
The cuts represent 20 percent to 25 percent of Ford's North American work force of 122,000 people. Ford has approximately 87,000 hourly workers and 35,000 salaried workers in the region.
Ford shares rose 68 cents, or 8.6 percent, to $8.58 in morning trading on the New York Stock Exchange.
Earlier today, Ford reported earnings of $2 billion in 2005, down 42 percent from last year's profit of $3.5 billion. It was the third straight year the automaker has reported a profit, but gains in Europe, Asia and elsewhere were offset by a loss of $1.6 billion in North American operations.
Plants to be idled through 2008 include the St. Louis, Atlanta and Michigan's Wixom assembly plants and Batavia Transmission in Ohio. Windsor Casting in Ontario also will be idled, as was previously announced following contract negotiations with the Canadian Auto Workers. Another two assembly plants to be idled will be determined later this year, the company said.
The other seven facilities that will be idled were not immediately identified.
A total of 14 facilities, including seven assembly plants, will cease production by 2012, Ford said.