Ford expanding buyouts to include all North American factory workers
As part of what we're calling the newly rechristened Accelerated Way Forward plan, Ford is reportedly opening up its buyout program to include all North American factory workers. Currently the buyouts are only being selectively offered at targeted plants. Apparently that's not getting the job done as effectively as GM's broader buyout program that saw over 30,000 workers accepting buy out offers. We're likely to see an official announcement about the move soon with details like how many factory workers Ford will be able to buy out and whether or not the buyout package being made to workers will change.
Thanks Chris and kjoyt for the tip!
[Source: Detroit Free Press]
Reader Comments (Page 1 of 1)
jim3480 3:27PM (8/21/2006)
Just wait until the next phase of the program dubbed: "Double-secret probation Accelerated Way Forward Plan"
Just one more in a long path of "Bold Moves!"
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Will Wheeler 3:52PM (8/21/2006)
I can't help but think the Unions shot themselves in the foot on this one. Don't they realize that by demanding outrageous benefits, they are basically pricing themselves out of a job?
Americans can build cars, and they can be built in America, and the workers can EARN good wages when they perform good work. Why is it the Japanese manufacturers can produce cars in the US, better, faster and cheaper than their big 2 (or 3) counterparts? I know the answer, GM and Ford are too big and bloated to compete against more effciant companies.
Ford should build a plant that uses non-union labor, and pay people for their performance. Do you want to place any bets on how well that factory would run?
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rwdmtparkingonly 3:53PM (8/21/2006)
Some good reading for the early retirement: http://www.amazon.com/gp/product/1585423130/sr=8-1/qid=1156189478/ref=sr_1_1/103-0306648-7769459?ie=UTF8 , I actually see the auto assembly trend reversing itself because cars are so damn heavy and take up so much cargo container room, but everyone else is SOL. China is even taking Mexican jobs away now, and India is hitting high level IT, engineering, accounting and legal professionals.
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Mr. Oblong 4:08PM (8/21/2006)
What are they gonna have fly by night temps building Fords. I could just imagine what type quality to expect from that.
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Jack of Shadows 4:57PM (8/21/2006)
Thank you Will Wheeler for you anti union tirade.
In response, may I say to you, suck up and bust.
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Matin 5:44PM (8/21/2006)
It has nothing to do with labor costs or UAW. It has to do with products. When was the last time Ranger was redesigned? How about the Crown vic? The Taurus the most popular car in America in the 80's and 90's, now just forgotten. Instead we get a borrowed mazda chassis and Gillete inspired Fusion. How about the Lincoln LS and Jaguar S-type? Now 7 years old and still no replacement. Its about management too busy golfing and starting a day with Starbucks than with turning products eevery five years and delivering what people want.
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Ryan 8:12PM (8/21/2006)
I have a quick question that I'm not sure about...
Why is it that people refer to the Big 3 or 2 as the "big" 3 or 2 when they are the *only* 2 or 3? Can somebody please answer that?
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Los Angeles BMW Chevrolet Ford 8:29PM (8/21/2006)
Yeah in a lot of ways american cars haven't kept up with the times. There hasn't been enough refinement and IMO not enough cool factor.
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Infinihertz 12:06AM (8/22/2006)
#2 and #5 are both part right and part wrong.
To say that it has nothing to do with labor costs is kidding one's self, as that has a very direct connection to the cost of vehicles (though is still only a fraction, as material costs and other such things are on the rise).
To say that the UAW is the only problem doesn't look at the big picture. Ford (and GM and probably DCX) is dealing with steel and copper prices up about 100% since the start of the year. Doubling material costs doesn't help. Neither does a weakening US Dollar. These things affect Toyota, Honda and others to a degree, but not in the same way, as they use different suppliers - many foreign - and are not facing the same degree of struggle. The "Big 2.5" have several (local) suppliers in common that the others do not.
Another big issue is the immense cost of health care, especially for retirees. Whether the American auto companies are around in 50 years or not, Toyota and others are going to be going through a similar situation unless regulations change dramatically between now and then.
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Meek 11:32AM (8/22/2006)
Infinihertz, I disagree with some of your reasons. The domestic content on the vehicles that Honda and Toyota build in the US is on par with the vehicles that Ford and GM build in the US. For example the Accord has 97% domestic content.
http://www.mises.org/fullstory.aspx?control=1299
Honda and Toyota build their biggest sellers in the US (Accord, Civic, Camry)
Also, the weakening US dollar. This is an excuse that has been thrown around widely, and exaggerated. (from http://en.wikipedia.org/wiki/JPY )
1970: 360.00yen/$1
1975: 297.85yen/$1
1980: 238.80yen/$1
1985: 254.78yen/$1
1990: 144.40yen/$1
1995: 98.58yen/$1
2000: 106.90yen/$1
2005: 103.58yen/$1
The dollar is what is weak in that comparison. I can see if you are to talk about China and the yuan, but not the yen.
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Will Wheeler 9:09PM (8/22/2006)
Lastly, Jack of Shadows you are an idiot.
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