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Ford Gears Up For Major Cutbacks... - ANTHONYD - 01-24-2006
I hope our fellow workers on the board dodge the bullet.
Rumour has it 25k workers are getting the axe.
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Ford expected to cut in Canada
By GREG KEENAN
Friday, January 20, 2006 Posted at 11:13 PM EST
From Saturday's Globe and Mail
Ford Motor Co. is expected to trim jobs in Canada as part of a plan to slash its work force by 25,000 people that will be announced Monday, industry observers said yesterday.
âYou have to have some sort of sharing of the pain,â David Cole, chairman of the Center for Automotive Research said yesterday. âI don't think anything is off the table.â
The restructuring plan will be far-reaching and comprehensive and is likely to include the auto maker getting out of the minivan business, said Mr. Cole, who heads the industry think tank, which is located in Ann Arbor, Mich.
If Ford takes an axe to its Canadian operations, the likely targets are the Essex Engine Plant in Windsor, Ont., with about 1,100 employees, and an assembly plant in St. Thomas, Ont., where 2,500 people work. Salaried job cuts that are expected as part of the announcement will also almost certainly affect Ford Motor Co. of Canada Ltd., which employs about 14,000 people at those two plants, other engine operations in Windsor and another assembly plant and head office operations in Oakville, Ont.
Ford puts together its Freestar and Mercury Monterey minivans at that Oakville plant, but the company said earlier this month that it will assemble two new sport utility vehicles there, which means the 3,000 jobs at the operation should be fairly safe.
Ford announced last fall that it will close its casting plant in Windsor, Ont., which will eliminate about 500 jobs.
Canadian Auto Workers president Buzz Hargrove said earlier this week that he's most worried about Essex and St. Thomas.
Industry sources and analysts said Ford might eliminate one shift at the St. Thomas plant. Sales of Crown Victoria and Mercury Grand Marquis sedans made there slumped 14 per cent last year to 132,657 from 154,843 in 2004. That's enough for about one shift.
Assembly plants in St. Louis, Atlanta and St. Paul, Minn., are expected to get the chop, along with several engine and components plants. Wire service reports said a total of 10 plants will be shut.
Slashing 25,000 jobs would represent about 20 per cent of Ford's North American automotive work force of about 120,000, which includes 35,000 salaried employees.
Ford spokesmen refused to comment yesterday.
âThe announcement on Monday will be North American in scope, and comprehensive,â said John Arnone, a spokesman for Ford Motor Co. of Canada Ltd.
Ford's sales numbers for the first five years of the decade underline why it needs to close plants.
In 2000, Ford sold 4.5 million vehicles in Canada and the United States. Last year, it sold 3.4 million. That drop of 1.1 million is the equivalent of more than five assembly plants turning out 250,000 vehicles a year, the standard manufacturing footprint for such plants.
At the end of last year, Ford had enough production capacity to assemble more than four million vehicles even though it sold a little more than three million.
âInterestingly, we believe Ford's fixed costs are higher today, while Ford is producing 3.4 million units, than they were in 2000, when they produced over 4.7 million units,â Rod Lache, an analyst at Deutsche Bank, said in a note to clients.
The problems at Ford are part of a massive cloud hanging over Detroit.
Ford's larger rival, General Motors Corp., the world's largest auto maker, unveiled a similar restructuring plan in November that includes cutting 30,000 jobs and closing several assembly plants, including one in Oshawa, Ont.
Of the once-mighty Big Three auto makers, only the Chrysler division of DaimlerChrysler AG is financially healthy.
Several parts makers, including giant Delphi Corp., are operating under creditor protection. :(
Ford Gears Up For Major Cutbacks... - 2001 ZTS - 01-24-2006
Now that the announcement has been made, from what I see here in this early analysis is that there is no specific mention of the Canadian plants other than one would expect St. Thomas at least, to be one of the "to be named later" closures in 2008:
http://quote.bloomberg.com/apps/news?pid=1...6PEc&refer=home
Ford Gears Up For Major Cutbacks... - ANTHONYD - 01-24-2006
What's truely scary is all of the people in the autopart manufacturing companies that are going to lose their jobs as well.
Ford Gears Up For Major Cutbacks... - OAC_Sparky - 01-24-2006
ANTHONYD,Jan 23 2006, 11:28 AM Wrote:What's truely scary is all of the people in the autopart manufacturing companies that are going to lose their jobs as well.Yep, they say that for every job lost in the main manufacturer, 7-10 jobs depend on them, whether its parts manufacturing, lawyers, barbers, waiters, etc.
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The 25,000 Ford employees that get cut today means 175,000 - 250,000 non-Ford workers are substantially affected.
Ford Gears Up For Major Cutbacks... - 2001 ZTS - 01-24-2006
More Canadian details:
http://www.thestar.com/NASApp/cs/ContentSe...72154&t=TS_Home
Ford Gears Up For Major Cutbacks... - ANTHONYD - 01-24-2006
Sounds like Oakville is being held in VERY high regard....
This may have something to do witht the Aviator plans.
I'm looking forward to Meford's views. *probably hasn't slept in 2 days*
Ford Gears Up For Major Cutbacks... - 2001 ZTS - 01-24-2006
ANTHONYD,Jan 23 2006, 01:22 PM Wrote:I'm looking forward to Meford's views. *probably hasn't slept in 2 days*
[right][snapback]166466[/snapback][/right]
Is he on another drinking binge AGAIN? His old lady is going to be pissed.
Ford Gears Up For Major Cutbacks... - meford4u - 01-24-2006
Your missing the fact we BOTH work there. So if one of us gets hit, we both go down like a sailor in a Uboat.
But I am not surprised at all. We knew alot of this was coming. Too bad for the guys/gals in St. Thomas. They won't even get a chance to come to our facility as Windsor already has those rights and We are not hiring, even with the new vehicle coming. So don't ask for an application because there aren't any.
I was waiting on some news before we signed the new house deal. Now that it's official I can take a crap again. I really wasn't that worried but I slept like s*** last night. We were told they were going to cease production of the f***star immediately and we would be laid off until July. Obviously that didn't happen and I am going to kick the s***e out of my boss for having a big mouth.
Just happy to have a job.
Both of us.
Ford Gears Up For Major Cutbacks... - ZTWsugardaddy - 01-24-2006
Funny, I just worked a night shift a few weeks ago guarding a new plant in NewMarket which makes suspensions for several Ford models.
Someone forget to tell these people that business is not good?
Ford Gears Up For Major Cutbacks... - Kool_ZX3 - 01-24-2006
When i waited for the news this morning, i was hoping most of canada's operations would stay, and it did kinda-sorta. St.Thomas not closed but down to 1 shift, windsor closing but oakville alive and kickin. I am waiting to see an edge/MKX up close fella's B)
I was surprised wixom got the axe really. Big news also, all the supplier's gettin cut. There is going to be a huge loss of jobs and or layoffs. It sucks :( But needs to be done.