Filed under: Hirings/Firings/Layoffs, Ford
Ford begins denying buyout offer to white-collar workers
Just last December, Ford accelerated its effort to reduce the company's white-collar workforce by 10,000 souls. Buyouts were offered with the hope that salaried employees would follow of the lead of hourly workers, who had already been offered packages. Unfortunately, in some areas of the company, workers are jumping ship faster than the company can let them.
In a move that has reportedly irked some employees, Ford has had to renege on some of its buyout offers because an overwhelming number of responses were received from certain parts of the company. Since each department needs to keep some staff on hand, reports say that Ford has been forced to exercise its option of denying the buyouts to select folks. The fact so many employees were willing to leave the company certainly doesn't say much about the current level of confidence among the rank and file. We informed you recently about the state of employee morale at the Blue Oval and we're guessing this isn't helping matters much. Just imagine how pleasant a co-worker will be if he or she has had to cancel retirement plans. They probably aren't the ones bringing in the danishes.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 1)
akintz 1:39PM (2/20/2007)
"Oh, hi... we'd like to offer you this great buyout package to leave our dying company."
"Sweet! I'll tak..."
"SYKE!"
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sbessette91 2:01PM (2/20/2007)
I feel bad for Ford Motor Company. Here they are doing all they can to survive and no one cares. Chrysler, on the other hand, gets in a tight spot, and rumors of buying and absorption erupt like a volcano. Americans need to realize that Ford builds just as good quality cars as Toyota and Honda. Toyot stands by and laughs while Americans voluntarily shut down an American legend. No more Mustang, no more F-Series, no more Exploreres, Expeditions...all you will have is a Seqouia that cant tow shit and Solaras that dont work.
Wake up and smell the roses people.
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sb 2:03PM (2/20/2007)
ok, i typed that in a hurry...Toyotas* and Explorers*
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incognito 2:04PM (2/20/2007)
I work for a Fortune 10 firm that had a buyout package a couple years ago. It was a fairly sweet deal, and lots of people took it, retired early, went back to schook, or it was the push they needed to move on to something new. FAR more took the package than was what was projected.
They fired the HR guy.
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Frustrated Consumer 2:10PM (2/20/2007)
"Americans voluntarily shut down an American legend"
Please - it's called capitalism. If you don't like it, move to Cuba where they guarantee jobs.
I'd love to buy a Mondeo. Instead they choose to sell Expeditions. They loose market share. End of story.
American management has to be the worst on the planet. It doesn't work with cars, it doesn't work with wars.
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akintz 2:39PM (2/20/2007)
"all you will have is a Seqouia that cant tow shit"
If you're trying to tow more than a tiny Uhaul trailer with a Sequoia, you should just give up anyways. It's not made for that and if people don't see that when they buy it, tough cookies. Let them learn the hard way and then bitch about it later. I'll proceed to laugh.
But ya, like someone else mentioned about the Mondeo and the Expeditions... if they make seemingly poor choices about what they sell and then wonder why they're not selling... too bad.
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The Dearborn Observer 3:02PM (2/20/2007)
If Ford had the right leadership, I'd recommend they cancel all the buyouts, take the $23 billion, and go "all in" for product development.
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Aki 3:11PM (2/20/2007)
Anyone who thinks Ford has the right products to appeal to consumers is out of their minds. I'm sorry, but as soulesss and boring a Camry is, it's still better than whatever bland model Ford dredges up.
Fact is, Ford needs a white-collar overhaul--not at the bottom, but at the very top. Dump Mark Fields, whose marketing background drives him to push for stupid catchphrase campaigns such as "BOLD MOVES", as opposed to putting out great product.
Ford is being run by sales and number crunchers... NOT engineers and designers; therein lies the reason why their product line is so lackluster. Instead of something truly bold, they keep putting their eggs into the SUV/CUV or truck basket (Edge, Fairlane), because they keep hoping that that segment will generate the sales it needs. So instead of being leaders in the industry, they're followers.
Euro Focus doesn't see light of day because compacts give lower profit margins than say an F-150 or Explorer.
Whenever you have a company run by finance or sales people, product usually suffers. CFO's dictated much of GM's direction in the 80s and 90s, and look where it led them. Only recently has GM truly pushed for product, and look what's happening: people are already forgetting about their yesteryear fiscal woes, and actually want GM to succeed.
Forget the hourly workers or white-collar cubicle employees, the company needs to dump the upper echelon of incompetent execs, who got there not by expertise but by political haranguing.
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Aki 3:11PM (2/20/2007)
Anyone who thinks Ford has the right products to appeal to consumers is out of their minds. I'm sorry, but as soulesss and boring a Camry is, it's still better than whatever bland model Ford dredges up.
Fact is, Ford needs a white-collar overhaul--not at the bottom, but at the very top. Dump Mark Fields, whose marketing background drives him to push for stupid catchphrase campaigns such as "BOLD MOVES", as opposed to putting out great product.
Ford is being run by sales and number crunchers... NOT engineers and designers; therein lies the reason why their product line is so lackluster. Instead of something truly bold, they keep putting their eggs into the SUV/CUV or truck basket (Edge, Fairlane), because they keep hoping that that segment will generate the sales it needs. So instead of being leaders in the industry, they're followers.
Euro Focus doesn't see light of day because compacts give lower profit margins than say an F-150 or Explorer.
Whenever you have a company run by finance or sales people, product usually suffers. CFO's dictated much of GM's direction in the 80s and 90s, and look where it led them. Only recently has GM truly pushed for product, and look what's happening: people are already forgetting about their yesteryear fiscal woes, and actually want GM to succeed.
Forget the hourly workers or white-collar cubicle employees, the company needs to dump the upper echelon of incompetent execs, who got there not by expertise but by political haranguing.
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Gardiner Westbound 3:13PM (2/20/2007)
.
If Ford insiders have so little confidence in the company and its products consumers should be doubly wary.
A Ford employee wrote in another forum many who are entitled to employee discounts aren't buying Fords because of concerns about resale value and warranty service, very important with a Ford, when the company goes down.
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Howard Kerr 3:34PM (2/20/2007)
I was going to say something about the buyouts, but after reading just these few posts....I'm pretty depressed. I don't currently own a Ford product but have in the past. No lemons (knock wood), but I never bought anything super expensive and complicated. Last two Ford products: a 4 cylinder Ranger regular cab and a Euro Capri. Before that, a Fiesta which was a neat little car but then ford "had a better idea" and gave the U.S. the Escort. Oh well, I hope Ford turns it around.
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Robert 3:54PM (2/20/2007)
You have to also remember that just six or seven years ago, every single Ford employee got something like a $6,000-8,000 profit sharing bonus. I'd be pessimistic too!
But, just because a worker is pessimistic doesn't mean the company is changing for the worse. In fact, in Ford's case, given the history of wild cash bonus and the safety of bureaucracy, I would assume it is changing for the better.
I would argue that number crunchers have ALWAYS run the Japanese firms: if it isn't selling at levels where it gives profit, then there is little sense selling it as is, so we make it better. Corolla has never been a loss-leader for Toyota (maybe a break-even leader at worst during its product cycle). Number crunchers have also always run Ford and GM, but some of the reason the C1 wasn't brought over was ENGINEERING control! Stupid engineers and product developers... Right now, Ford has no choice, because emotion aside, it has to start showing black somewhere or there will not be a company. Emotional cars get sales, but not big sales and not necessarily repeat sales, and that's what Ford needs. The new Focus is kind of fugly, but it looks very functional, efficient and its mechanics improved a lot - the makings of something that can build a reputation.
However, there is something to be said for product that is better on absolute terms - e.g the C1 Focus or Mondeo (although I don't believe either is necessarily engineered significantly better than their counterparts at the target price points... just sculpted better).
Does Ford have the right product? No. I mean, a lot of what they have is good. The new Expedition is actually an excellent large SUV, but, God, who wants a large SUV for personal use? Not enough people, obviously. The whole C1 thing is obnoxious to say the least! And the Mondeo.... sigh.... don't get me wrong, the Fusion is a very nice and mostly competitive car (despite what Toyota lovers tell you), but it isn't the sophisticated Mondeo. Ford needs an updated small car. They need some B-cars. They needed a more significant refresh of the Escape. They need a new Ranger (although I hear more and more rumors that its coming with the 2009 F-150).
To the point about the X Plans, some of my friends who have X plans (both for Ford and the equivalent for GM) have been buying Chryslers because they are less expensive (more heavily discounted) than even their employee plans at Ford or GM. I haven't noticed a big trend of employee plan holders buying Honda or Toyotas (although I have seen the occasional Hyundai).
So, after all of that, my big comment: Ford did not take something away that was in someone's hand, and I'm sure there was a clearly spelled out methodology so that if too many people accepted buyouts, they could prioritize. People are upset because they didn't get their money, but Ford didn't turn their back on them. Ford could have just fired everyone! I wish my company would give buyouts instead of just pink slips!
If you're really so upset that you hate Ford, then quit with no pay. None of the rest of us get pay when we leave a company. Relocate? Out of Detroit? I'd pay Ford to do that!
But overall, if that many people are leaving, then Ford will be better for it if they can replace the gaps in talent. New blood. New energy. No expectations of Explorers bringing in $8,000 a piece and selling 500,000 a year to make sure I get a nice big bonus. No more hiding mistakes in red tape. No more passing blame. Limits on bureaucracy. Efficiency. Accountability.
I'm very cautiously optimistic, but that's sad considering I would consider myself a Ford loyalist.
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Daniel 3:54PM (2/20/2007)
As a stock holder I demand that the entire FoMoCo resign!
The most incompetent clowns I have ever seen. A group of Monkeys could make better decisions. They let their great product wither on the vine and introduce produce that is a joke.
How could anyone squander more than 100 years of the very best "Good Will" for a great American company, a true icon for U. S. industry?
Unbelievable? The blame lies with the Board of Directors - no one else.
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Daniel 7:12PM (2/20/2007)
I meant to say "the entire FoMoCo Board of Directors should resign!"
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Whydrive 9:32PM (2/20/2007)
That's right - only an idiot would buy a Mazda 6/Ford Fusion/whatever else it's called over a Toyota Camry.
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Mike 11:48PM (2/20/2007)
First off, the story here is just wrong. There were no retirement packages rescinded. The retirement packages were guaranteed. The buyouts they're talking about were the months of salary offered to leave if you couldn't retire. It was stated from the very beginning that those could be rescinded if they weren't necessary.
Personally, as I see it, if the person was ready to leave and didn't believe that turnaround was possible, they were a cancer on the company anyway. Why should Ford pay for them to quit? They're going to do so anyway, let them leave. I think the previous post was right on, replace those that leave with fresh talent that isn't so pessimistic.
The reason many decided to leave are that they have been around when times were good. Only 5 years ago they got big bonuses every year, lots of other perks too. Now the perks have cut back and are merely competitive with other jobs of their stature and talent requirement- how dare they?
Also, any Ford employee buying anything than a Ford product (unless they have special needs that Ford doesn't offer) is a traitor that needs to be brought out back and shot. If you don't support your company then who do you blame for the lost market share? Again these people are a cancer on the company and as short sighted and selfish as they come.
As for you Whydrive- if your post is supposed to be sarcastic, then OK. If not, then get real, the Fusion is ultra competetive with Camry. Less expensive, offers AWD, higher quality ratings, and in many people's opinion- better styling. If you can't see that then you really are blinded by Toyota.
Everyone just remember that most of the people that are leaving are in panic mode, simply scared that they would be one of the ones let go because they didn't perform at the top of their peer group.
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waiter, check please 6:20AM (2/21/2007)
A few years ago the press reported that Billy Ford was disheartened that an employee survey turned up that Ford employees wouldn't recommend a Ford product to friends and neighbors. Then whatever they called the 2001 recovery program happened, they announced they were building the GT40 and everything was on the upswing, right? So NOT!!
Why would anyone be surprised at this. These guys sit in the Dearborn bubble and wonder why the world's going by faster outside. Their dealers are in the "just o.k." category, just like most of their product portfolio so what brands survive in any category in today's competitive environment if you're at a disadvantage?
The idea is to out innovate, out quality, out reliability and durability and resale the competitor and offer it at a better price - that's winning, not - "we're one BIG new product introduction away from recovering".
This past Sunday's NY Times magazine cover story on Toyota offered a sharp contrast to Ford (and the equally delusional GM + Chrysler). Toyota produces hybrid's successfully because they bank on gas prices rising and want to be in business in 100 years. Ford pretended gas prices would be cheap indefinitely and built more V8s, SUV's, trucks, hoping the past would be prologue - bad consulting money paid to companies who told Ford what they wanted to hear I guess.
That employees want a package in that environment should be no big surprise anymore. They've heard one too many hollow pep talk. They've spent marketing money in such an unfocused way for so many years it's a wonder their board hasn't caught up with those millions yet. Marketing's one thing, creating desirable products that last and don't get recalled, that's another.
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Mums the Word 4:38PM (4/03/2007)
Hey post #4 I know exactly what company you worked for...hehe My buddy took the package too. Now a large majority of the workers are contractors...no benifits, vacation or nothing...
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