Ford Motor Company announced it plans to cut 30,000 jobs and shut down 14 factories in its North American division. Salary-related costs are being cut 10 percent and the company's officer ranks will be reduced 12 percent. Ford's restructuring announcement follows plans detailed by General Motors Corp last year to close 12 plants and cut 30,000 jobs by 2008. Both Ford and GM suffered from a slide in sales of sport-utility vehicles as gas prices rose and intensifying competition from global rivals. It is amazing that these companies can lose billions of dollars and remain in business. Will Japan be running the Detroit auto business soon?
Monday, January 23, 2006
Ford Follows GM With Cuts
Ford Motor Company announced it plans to cut 30,000 jobs and shut down 14 factories in its North American division. Salary-related costs are being cut 10 percent and the company's officer ranks will be reduced 12 percent. Ford's restructuring announcement follows plans detailed by General Motors Corp last year to close 12 plants and cut 30,000 jobs by 2008. Both Ford and GM suffered from a slide in sales of sport-utility vehicles as gas prices rose and intensifying competition from global rivals. It is amazing that these companies can lose billions of dollars and remain in business. Will Japan be running the Detroit auto business soon?
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