Ford's cost of recovery: Over $11 Billion for accelerated restructuring

In a filing with the Securities and Exchange Commission that surfaced yesterday, Ford estimated that it the accelerated restructuring plan announced last September will cost $11.2 billion when the books are finally balanced. In other words, it will cost Ford$11.2 billion to let go of 38,000 hourly and 10,000 salaried workers. The estimate includes ongoing costs for health care for any workers that didn't take the lump-sum buyout. Who knew it was that expensive to reduce your workforce?

If there is any good news here, it's that Ford has already accounted for $10 billion of that cost in 2006. The rest of the associated costs of the restructuring plan will be billed to the first quarter of 2007. Nothing like pulling the Band-Aid off quickly.

[Source: Automotive News - sub. req'd]