Ford to slash up to 30,000 jobs, 10 plants: report
NEW YORK (MarketWatch) - Ford Motor Co., in a move aimed at bringing its costs in line with its flagging U.S. business, plans to slash up to 30,000 jobs and close at least 10 plants in the next five years, according to a report published Wednesday.
Wall Street embraced the news in midday trading, with shares of Ford moving as high as $8.29, up 2%, despite a declining broader market.
[gee why dont they fire everyone to get share price up to $10? - Mish]
The Dearborn, Mich.-based automaker will present the restructuring plans, dubbed the "Way Forward", to the board of directors on Wednesday, the Detroit News reported, citing sources familiar with the situation.
The plan, expected to be announced Jan. 23, includes the departure of as many as seven top executives.
Ford spokesman Oscar Suris declined to comment on what he described as "speculative scenarios" from the media.
"A comprehensive plan is coming in January and it won't be solely about cutting costs," he said.
Mark Fields, new president of Ford's Americas division, is scheduled to present the proposal for changes through 2011, with cuts deeper than many observers expected, the report said.
A previous restructuring announced by Chairman and Chief Executive Bill Ford Jr. would have cut about 20,000 job cuts in its North American operations.
"Ford, like GM, has too much overhead, too many people and too many plants to support their current business," said Burnham Securities analyst David Healy.
The plant closures would likely include assembly lines St. Paul, Minn., and St. Louis, Mo., where it makes Explorer SUVs.
"This is part one of a two part program to get Ford back into the black in North America," Healy said. "Closing plants and cutting jobs is the easy part. The challenge will be part two - sprucing up the product line."
marketwatch.com
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30,000 Ford jobs - poof
30,000 GM jobs - poof
Who will be able to afford their cars?
Mish |
