Ford to close seven major vehicle assembly plants, layoff 30,000

As a part of its "Way Forward" restructuring plan, Ford announced today it will close 14 manufacturing facilities by 2012, including a total of seven vehicle assembly plants. Ford will idle the following facilities through 2008: St. Louis, Atlanta, Wixom, Batavia, Windsor Casting, and two additional plants that will be determined later this year. In addition, production at St. Thomas Assembly will be reduced to one shift. All of these actions will reduce total North American employment by 25,000-30,000 people in the 2006-2012 time period. This is in addition to the previously announced reduction of the equivalent of 4,000 salaried positions in the first quarter of 2006 - or 10 percent of salary-related costs - and a reduction in t he company's officer ranks by 12 percent by the end of the first quarter. Assembly capacity will be reduced by 1.2 million units or 26 percent by the end of 2008. The estimated pre-tax financial impact of the North American plan in 2006 includes $250 million for hourly personnel separations and $220 million for fixed asset write-offs.