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Ford To Resort To White Collar Layoffs

Posted by: David Kiley on May 28

Thousands of white collar, as well as blue collar, employees at Ford have taken buyout packages in the last year or so. But then the spigot got shut off. Now, with oil prices headed for the stratosphere and Ford’s F-Series pickups piling up on dealer lots, the automaker will resort to flat out layoffs. About 2,000 white-collar folks at Big Blue will lose their jobs by August 1, though some will undoubtedly be accounted for by attrition.

It’s painful medicine, but the company has been doing everything management knows how to do to resize the company for profitability since CEO Alan Mulally came on in September 2006. Ford last week had to abandon its target of reaching profitability by the end of 2009. The company’s European, Asian and South American businesses are doing quite well. But North America is dragging down profitability of both the auto business and Ford Motor Credit.

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Reader Comments

Kate Dillon

June 2, 2008 05:38 PM

SO WHAT'S NEW ???
Ford is ALWAYS, and HAS ALWAYS, laid people off in the hundreds. My father worked for Ford and every time they did this, everyone cringed! Luckily, my dad was always lucky and didn't go until he worked there 20 years. I am personally glad the american car makers are cutting back.

KARL SCHMIDT

June 2, 2008 08:09 PM

I've bought my last Ford car. It makes me damn mad that they're closing a plant in the U.S. and opening one in Mexico that will do the same work. Of course the product made at the Mexican plant will be shipped here to the U.S.
Why doesn't Ford sell all of it product made at that plant to the Mexicans and leave the U.S. alone! My next car will one from a manufacturer that is MAKING jobs for Americans and not for Mexicans and other foreigners. I wonder how many illegal immigrants work for Ford in the United States?

nair

June 11, 2008 02:07 PM

Well karl, it is globalisation at work!
no geographical or political borders exist. its all about costs and efficiency.

If Ford were to jack the prices by a few thousand dollars, would they be able to sell the same, just because it is made in the U.S? i doubt.

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Want the straight scoop on the auto industry? Detroit bureau chief David Welch and auto beat veterans David Kiley, Dexter Roberts and Ian Rowley bring daily scoop, keen observations and provocative perspective on the auto business from around the globe. Read their take on such weighty issues as Detroit’s attempt at a comeback, Toyota’s quest for dominance and the search for an efficient car.

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