Ford restructuring tab expected to hit $3.4 billion
Idling seven factories
will push Ford's restructuring costs up to a total of $3.4 billion (before taxes) for the year. The figure includes
over $2.1 billion associated with early retirement packages,
layoffs, and pension issues, as well as $280 million to close the plants.
The factories on the block so far are the two the automaker announced last week -- St. Paul, Minn. and Norfolk, Va. -- as well as the Wixom, Mich., and Atlanta, Ga. Production at St. Thomas will be cut to one shift.
[Source: The Detroit News]
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Reader Comments (Page 1 of 1)
Anthony 3:09PM (4/20/2006)
Wonder why they didn't close their plants in Mexico...
**wonders**
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Chris 3:26PM (4/20/2006)
Why did Ford ever open so many plants in the first place? Did they expect to control 70% of the American market?
I see Toyota is having the same delusional ambitions; continuing to open more plants thinking the increased market share will never come to a halt. "Yes! At this growth rate, we'll have 250% market share in 10 years!" Do they ever consider there is a market share cap?
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JRoane 4:22PM (4/20/2006)
Why did Ford ever open so many plants in the first place? Did they expect to control 70% of the American market?
The following are some of the initial dates of production for the proposed plant closings - Norfolk (1925), Twin Cities (1925), Atlanta (1948). In 1925 Ford probably did have ambitions of 70% market share since it wasn't too far removed from having 90% of the market with the Model T. Even in 1948, the first real foreign car was 20 years in the future and the baby boom was in its infancy. If they hadn't built the plants they have, Ford may already be an historical footnote.
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nelson 8:04PM (4/20/2006)
Its supposed to be the way forward but already Ford is making some big mistakes. You dont close your number one truck plant in quality and production numbers just because you dont have passenger cars people want to buy.Bill Ford should look back to the man that had to cut his own arm off to save his life when a boulder rolled on his arm. He cut off the arm he was having trouble with.Ford doesnt know how to do that.
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