One day I may be able to write some good news about Ford, but this certainly isn’t that day. Ford has announced a major restructuring plan in hopes of getting this runaway train back on the tracks. They need to cut their operating costs by $5 billion per year. They will be firing 14,000 salaried workers (a third of their American workforce), and they will be offering buyouts to every one of their 75,000 hourly workers. That means that a total of 44,000 Ford employees will have a new boss by the end of next year. Adding to the innumerable 3,000,000+ manufacturing jobs lost in the U.S. since President Bush took office.
There will also be fewer Ford vehicles on the road. By the end of 2008 the Ford production capacity will be decreased to 3.6 million vehicles, a drop of 26 percent from current levels. They had already announced that they were closing seven factories, and they have given the death sentence to two more today. I’m sure morale is at an all time high at FoMoCo.