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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (9869)	12/2/2001 5:19:43 PM
From: mishedlo	Respond to of 99280

Gee - with auto sales so rubust. Record auto sales in OCT. Things must be so swell that they need to cut back now. Right on the brink of recovery. ========================================================= Report: Ford to Lay Off Hundreds Report: Ford to Announce Cost Cutting Measures, Including Laying Off Hundreds of Hourly Workers DEARBORN, Mich. (AP) -- Ford Motor Co. [NYSE:F - news] is expected to lay out several steps to stem losses, including cutting some benefits for white-collar employees and laying off hundreds of hourly workers. The latest moves, which could save the company hundreds of millions of dollars, are detailed in a draft of a company news release -- dated for issue on Wednesday -- that was reported by The Detroit News on Sunday. In that document, Ford chairman and chief executive William Clay Ford Jr. called the moves painful but necessary and said more actions are to come. ``We recognize that our fourth-quarter results forecast is unacceptable and we are working with a laser-like focus to improve our performance,'' Bill Ford was quoted as saying in the release. Ford this week also is expected to warn investors of deeper-than-expected fourth-quarter losses. The automaker plans to forecast a loss of about 35 cents a share or an estimated $630 million, according to Ford insiders and internal company documents. Among the cost-cutting plans the automaker is expected to announce: --Eliminating one of two production shifts at its pickup truck plant in Edison, N.J., effective Feb. 4, and laying off 600 hourly employees and an unspecified number of salaried workers. The number of truck built at the plant is expected to be reduced to 84,000 a year. --Eliminating matching contributions on 401(k) plans for its 45,000 U.S. salaried employees for an indefinite period. The company now adds 60 cents in Ford stock for every dollar employees contribute to 401(k) funds, up to 10 percent of their annual salary. --Increasing health care premiums and prescription drug co-payments for U.S. salaried workers. U.S. salaried retirees will begin making monthly contributions to their health care plans in June 2002. --No merit salary increases will be given to Ford's top 2,200 executives worldwide in 2002. Ford plans to rely more on stock options to compensate top managers, in an effort to link executive pay with company performance. Ford spokesman Jim Vella did not immediately return a phone call seeking comment on Sunday. Many analysts have said such cutbacks are necessary for Ford -- as well as General Motors Corp. and DaimlerChrysler AGs Chrysler group -- to compete with Japanese and European automakers. Ford has been plagued by eroding sales, questions about vehicle quality and the ongoing Firestone tire crisis. Through September, sales of Ford vehicles were down 11 percent from the first nine months of 2000, a record sales year for the industry. By the third quarter of 2001, Ford's losses dipped to $692 million, a reversal from the same quarter a year earlier, when it earned $888 million. In October, Jacques Nasser was ousted as chief executive and replaced by chairman Bill Ford. The management shakeup also included the elevation of Nick Scheele to chief operating officer. Ford announced in August it would cut 4,000 to 5,000 salaried positions by the end of 2001. More cutbacks are expected when Ford details a broader restructuring plan in January. biz.yahoo.com