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Ford successful in cutting 15 percent of North American workforce

08/07/2008, 10:10 AM

By paulee

As part of its turnaround plan that included cutting up to 15 percent of its salaried workers and contractors, an executive from the Blue Oval announced on Wednesday that the goal was met.

“We had to take some tough decisions, we got through it,” Mark Fields, Ford’s president of the Americas, told Reuters reporters. Fields did not specify exactly how many employees took the also undisclosed severance packages Ford offered. The automaker lost $8.7 billion in the second quarter of 2008, and will re-evaluate its operations further, so it is possible more cuts will be made.

Fields said the company plans to make its biggest ever investment in engine and transmission production over the next two years, as it realigns its offerings to match the customers’ and government’s new demands for more efficient cars. It is also bringing six European models to sell in North America and retooling truck plants to build passenger cars as demand for the high-profit trucks and SUVs falls due to high gas prices.

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08/07, 10:19 AM

posted by:

xyunya

Some success to report!
Christopher (ihustle) care to comment on this one?

08/07, 10:42 AM

posted by:

moto-racer13

Ford is garbage

08/07, 10:47 AM

posted by:

elviososa

^^^….wrong…GM is garbage.

08/07, 10:47 AM

posted by:

bigp

well when money is not coming in something has to stop, via 15 percent of the workfore

08/07, 10:50 AM

posted by:

moto-racer13

elviososa, both GM and ford are garbage. It shows in their poor quality and sales.

08/07, 10:52 AM

posted by:

carbonsigma

All cars are garbage.

08/07, 10:52 AM

posted by:

johnnycanuck

I was thinking that in honour of Ford’s achievement I’d drink 15% less booze today, but that would just put another poor bastard out of work.

08/07, 11:14 AM

posted by:

zoomnbyu

I think we need a heavy incentives package for the big three PRONTO!!! Just kidding! :) These companies have known what is at stake for years and have failed to get themselves out of trouble. Ford just keeps cutting and cutting. Chrysler is now a LLC and is severely on the ropes. GM is still mired down by thier own size and overhead. While some of the products that are out and forthcoming are promising, all three are still plagued by the weight of old business practices and profit sapping unions. It’s a shame that they cannot build a product here that is engineered here and still competive overall.

08/07, 11:24 AM

posted by:

xyunya

zoomnbyu, I would take unions out of problem equation. labor relationship is clearly problem at Big 3. When Saturn was conceived 20 years ago, unions gave GM free hand. Today Saturn manufactures 1 Opel based car in US of dismal quality – Aura, and dealers lots are full of them unsold. Similar Opel is selling well in Europe. BTW identical mechanically car build by Chevy is selling with 4 cylinder engine.

08/07, 11:25 AM

posted by:

rds130

Quite an oxymoron to call this a “success”.

08/07, 11:58 AM

posted by:

beatusmongous

The good news is that six Euro vehicles are coming here.

Saturn was conceived 20 years ago!? Damn, I’m old. I remember when they just got started.

08/07, 11:59 AM

posted by:

AmericanIdiot

^^^ lol touche. but yay Ford.

08/07, 12:16 PM

posted by:

ktulu

piutting people out o’ work is a success?

nither Ford nor GM is garbage.

The big 3 R still plagued by the weight of old business practices

Saturn makes 0 cars o’ dismal quality

first saterns, I believe, were 1991 models.

08/07, 12:25 PM

posted by:

xyunya

that what’s article says
management at both sucks (garbage) and that defines companies
The big 2 r plagued by inept and incompetent management, who should improive business practices
Saturn manufactures 1 car in US and can’t sell it (check the lots). what’s definition of quality?
before cars were sold the factories needed to be build and cars needed to be designed and certified

08/07, 1:26 PM

posted by:

ihustle

*Xyunya* Withing the last 3 months, ive seen numerous amounts of automobile companys cutting back. Am i supposed to respond? Its obvious the american automobile companys, are having a difficult time, due to a slumping economy. This has nothing to do with the quality of my product. I have seen very small decline if any in sales. Ford is cutting back workers, not dealerships. What kind of response are you looking for? Didnt really make sense to me but i guess ill roll with it.

08/07, 1:47 PM

posted by:

xyunya

I just hoped that you are still making a living, and obviously you are. As far as quality vs. company. Allow me to elaborate on terms that may or may not comprehend: Nazi Germany was manufacturing the best armament of its day but it was not a “good” country. Ford may manufacture OK cars that consumers don’t care to purchase, but it is not a good company.
Go sell.

08/07, 2:39 PM

posted by:

inline6

xyunya,
Care to know how much of the Aura and Vectra interchange? Almost nothing. And this month, Aura was Saturn’s biggest seller. GM totally reinvented the Saturn division in 18 months, turning them from a cheap compact-selling plastic-bodied brand into a division that sells multiple vehicles (Outlook, Vue, Sky) that can list higher than $30,000. Even a loaded Aura can get within $1500 of that mark. While you’re at it, do you have ANY data to show that the Aura is of poor quality?

Midsize car, sports car, and large vehicle buyers just aren’t used to Saturn offering them anything. So it makes sense that it would take awhile for the awareness, and then eventually the sales, to get there. However, Aura sales have been growing, and this month, they outpaced the Vue, which has had the best-selling title every month since the Ion was canned (and in a few odd months during the Ion’s run).

And while I think it was a stupid decision to turn Saturn into another Pontiac/Buick competitior instead of a funky Scion/Mini-type division, that does not give the unions a pass for the stranglehold they’ve had on GM’s bottom line and therefore competitiveness. GM negotiating terms with one new plant in the south (at which they no longer build Saturns, but Chevy Traverses) does not mean they could have held out for the same things in their other plants.

08/08, 10:43 AM

posted by:

Buhbye

It’s interesting how people who can’t even write at a 7th grade level criticize American management, quality, hourly workforces, etc. Make something simple for us like, say, a crankshaft, so we can all be impressed with your wisdom and therefore, your humble opinions.

The Japanese came in hoards with clipboards to American car plants back in the 1960’s to learn and take notes about how to build cars. They weren’t so ’smart’ back then.

Ford should have saved 16% by cutting Mark Fields.

 
 
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