Thats the stupidest thing ive ever seen

does this apply to white collar as well or simply a way to shed the UAW fat?

What if all the workers take them?

Kibble… oddly enough, from a capital perspective, if ford got out of the car business and just took their money (and liquidated their hard assets — plants for the real estate value, other real estate holdings, tooling on the resell market, logistics as a shipping firm), id venture to say that Ford would increase their market cap 10X. On a GREAT year (ie, best year ever kind of results), Ford would do $4-6B on ~$120B would of revenue. That is a net profit of 3.3-5% net margin which is absolutely horrible for just about any other industry. For example, BellSouth (comms stalwart about to be swallowed by ATT) made $3.3B, $4.8, and $3.9B over the last 3 years on revenue

To continue what got cut off…

BellSouth did revenue

You can’t be profitable when the guys who screw in dashboards make six-figures.

Serious Question
Would any new workers that ford or GM hires when (or if) they get back on their feet be forced to join the UAW?

Amen Renton! We agree on something.

Unions are half the reason American companies have less than stellar quality ratings. Unions are half the reason it takes GM nearly 40 hours to manufacture a car where it takes Nissan an average of 19 hours. Unions are half the reason why GM and Ford manufacture a vehicle that costs $5-$10k more than it’s foreign competitors. My favorite story about unions comes from my brother who is a manager at the DC Hilton. The hotel has to double security to keep all of the prostitues out when the UAW comes in to spend all of that well earned union dues. This is after the conference coordinator repeatedly turns down requests for the hotel to PROVIDE prostitutes.

is this more stupd that GM’s company wide buyouts?

Because it is the same thing ..

They will let everyone who wants to leave, leave … if that leaves them wih too few workers for their current needs, they will staff the rest with non-union temps, until they close all the plants they have planned to close. Then they transfer the rest of the unionized worker to the plants satying online, and if they are still short, hire and train the rest.

Ford was plannign to avoid company wide buyouts, for the very reason, that they might have to hire new people, thus having a retiree as well as a new employee on the pay roll, but the definiteive nature of take it or leave it company wide buyouts gets much better reaction, that the shy approach they have used thus far.

In the end, they will cut costs, which is what the Wall street wants, and what will help them survive untill their products arrives in 08.

This is not the solution – only helps to survive until the solution arroves – since Auto industry has such a long lead time.

Igor

QUOTE:
Would any new workers that ford or GM hires when (or if) they get back on their feet be forced to join the UAW?
END QUOTE

If hired permanently, yes .. unless the plant is in the southerns states that have “free to work” rules that give workers right not to join any union present at their workplace – hence all the transplants in the southern states.

All northern states ahve laws in place, where if your workplace is unionized, yo uare required to join the union.

However – Ford, and GM, are working dilligently on concessions from UAW.. there are new work rules in the works, possible two tiered system, where you do not get full layoff protection untill certain seniority and other new rules, that allow Ford and GM be mroe flexible with their workfoce, and cut labor costs.

Igor

Hi,

What is there to stop Ford from ending all vehicle production in the United States?

Paul

I duno Paul not much but I hope they don’t. As of now Ford isn’t doing good I hate to admit, but I’m not going to stick my nose in the air about it. No Bold Moves here, no bold moves anywhere for Ford.

Interesting point Paul. I really see (and something I brought up a cpl wks ago) that Ford could easily leverage their multi-billion dollar “committed investment” to Mexico and tell the UAW that it’s their choice if they want these cars built in the USA. They can either provide concessions to make the costs competitive to that of Mexico or they can just move it down there like they planned.

That and the other new plant (that is supposedly still under consideration for location in the USA) that can be used to pit states against each other (remember DeVos is running against Granholm in MI as Governor b/c she couldn’t land a new mfg plant) for tax breaks and free land.

I think that Ford can deliver a cost competitive solution if the UAW will let them produce vehicles, or if Ford does it in spite of the UAW, at the same cost as those of Toyota, Nissan, and Honda in North America.

The question is whether the Operations and Mfg people are making BOLD MOVES and not just the designers and product planners.

Hello again,

I was working for a contract company (laid off on 8/3/06) and held a position at Ford Credit in Dearborn Michigan. I worked there as a Computer software/hardware Analyst for 5 years 10 months 3 days 5 hours. I was laid off at 11:00 a.m. while working; my Program manager walked up to me and asked to see me. I was taken to a conference room where an HR representative was waiting for me and I was handed a letter indicating that my position was being terminated. I wasinformed to turn my pager, Ford I.D. Badge, and SecurID card to my Team Lead. I was then instructed to pack up all my belongings and was then escorted out of the building.

Just venting.

Paul

David,

If I remember correctly Ford stated that a new plant would be built in North America. I highly doubt it will be built in the United States. They would rather build it in Mexico as a first choice and Canada as a second choice.

Paul

The UAW really need to see the big picture. Aparently they don’t seem to understand that Ford and GM are having problems right now with remaining competitive in the maket, mostly as a result of cost cutting measures to maintain these Union contracts. these cost cutting measures have inclueded poor product planning and design, and poor materials use. these cost cutting measures, or bean counting engineering as I call it. Have lead to poor products at a poor price points which have done nothing to help the big three in remaining competitive in the U.S. market, with the Japanese and European car makers. Now, as I understand it the UAW is trying to protect the jobs of auto workers, right? So how is holding GM and Ford financially hostage helping anything, if things continue as they are UAW will stangle GM and Ford to death and posibly Chrysler as well. So when the big three are gone as a direct result of labour cost who will all these UAW guys work for? Toyota? Honda? Nissan? I think not, these guys don’t care much for the Union type. So I guess my point is why is the UAW Killing itself?

Frogger,

When you stated “So when you big three are gone” do you believe that they will be out of business?

I believe that the time is almost up for the UAW and Delphi to work out a deal and I don’t see that happening. I see the Delphi UAW contract thrown out by the judge and a strike by Delphi workers that idles GM’s North America plants. In my opinion this is all in the plan, GM will then go Bankrupt. GM will be able to throw out its UAW contract or better yet (for GM) not negotiates a new UAW contract in 2007. Then they can hire new employees if the current employee fails to return to work with no UAW contract. Plus GM can take back Delphi since it went Bankrupt (this was all in the fine print when GM spun off Delphi).

If this happens what will Ford do? I don’t believe they will go Bankrupt. I believe they will just end all production of vehicles in the United States. Build new production facilities (they are needed anyway as is a whole new vehicle line up to compete with Toyota and Honda) in Mexico and maybe even China. Then Daimler Chrysler will follow suite, taking everything back to Germany.

Paul

how gay can ford be i bet all kinds of people are ganna take this opertunity up ford is dying while gm is slowly regaing its life.

The thing you have to remember is that Ford is making money over all (just loosing money in North america and with Jaguar). GM on the other hand is loosing money all together.

The thing you have to remember is that Ford is making money over all (just loosing money in North america and with Jaguar). GM is loosing money all together.

GM on the other hand is losing money all together ? FALSE statement Paul. GM is making money in every market but North America. Get your facts straight, will ya ?