Ford meets salaried cuts
For white collar workers that still work at the Ford Motor Company: congratulations, you've officially made the cut. Ford's President of the Americas, Mark Fields, announced at a media event that the Blue Oval has successfully achieved its targeted cuts, at least for now. Fields told reporters that Ford would "continue to look at our structure and evaluate that versus the external environment," which is fancy executive talk for "if we don't start making some money, we'll cut some more." Fields didn't reveal the exact number of cuts that were made to achieve that goal.Ford announced in June that it would cut 15% of its salary-related costs in an effort to become more lean and conserve cash during the brutal automotive downturn. Ford is trying to conserve enough Bennies to pay for its ambitious powertrain plans that will be needed to help the Dearborn, MI automaker offer the fuel efficient vehicles customers want. Fields said that spending on engines and transmissions over the next couple years will be "unprecedented," and that Ecoboost, diesels, hybrids, and other fuel-saving technologies will get the lion's share of the spending. Ford also plans to convert three truck and SUV factories to small car production and add six European models to its product mix.
[Source: Reuters]
Reader Comments (Page 1 of 1)
AngeloD 9:35AM (8/07/2008)
Ford seems to be right on track for a strong turnaround when the economy picks up again in a year or so.
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John 9:45AM (8/07/2008)
I don't have anything to add to this. I just wanted to see if I could get a comment in before Matt does his normal I hate Ford crap.
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Paul Bensman 9:48AM (8/07/2008)
I truly believe Ford is making the right moves. They now understand that they need to bring their great European
models to the US, they should be a big hit here. They are also getting lean and mean to weather this storm. I'm so please with their progress, I just ordered a new MKS to help support their efforts.
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Daniel 2:57PM (8/07/2008)
It's great that you are supporting Ford. As for me, I wont buy squat from these idiots until they offer a full plug-in series drive bio-diesel-electric hybrid that gets at least 70 mpg. They could just offer the one they actually did build eleven years ago the Ford Prodigy. See link.
http://media.ford.com/article_display.cfm?article_id=3481
John 5:34PM (8/07/2008)
@Daniel
Are we to understand then that every company that doesn't sell "a full plug-in series drive bio-diesel-electric hybrid that gets at least 70 mpg" is an idiot, which is probably every car company? Therefore you will not be buying any car in the near future?
Talk about an idiot!
dan spalinger 9:53AM (8/07/2008)
Fields should have helped out and canned his own arse...
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2007RC46SP2 10:51AM (8/07/2008)
so mid level management and down had to take a cut.
when are they gonna start cutting upper level management?
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Gregg 10:22AM (8/07/2008)
The jury is still out though. It may be a case of too little too late. Ford dallied while its market share was falling, issuing half-assed redesigns and neglecting its engines. Now they have come to jesus, but these things take time. Getting their Euro models here won't happen sooner than the 2011 model year. They keep having to move off the date where they will return to profitability, but that cannot be moved indefinitely.
Meanwhile, the economy could be in for a long recession, as we still haven't seen the full effects of the housing downturn and foreclosures (with prices still falling as well), the financial industry, the losses still coming from overly optimistic leases, continued high energy and food costs, the accelerating debt, no end in sight for the war, no solution for the health care crisis, and an overall economy that would completely collapse if consumers stopped buying stuff they don't need and cannot afford. When things get so out of whack, the rebalancing can be quite painful. Bottom line, it is possible Ford may not survive.
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Daniel 6:44PM (8/07/2008)
Hey John.
Oh, your right, Ford (and GM and Chrylser) are really doing great lately. They are just doing an outstanding job of running these former industry stalwarts. You are a real smart guy. You don't work for the FoMoCo PR department do you?
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John 9:59AM (8/08/2008)
Nope, No affiliation with Ford. Just an auto enthusiast who is most enthused by Ford. I am also an enthusiast for the Canadian and US economy and pulling for the Detroit 3 whose profits are much more beneficial to North America and my children's future.
I worked all of my career at IBM and I always hated to see people criticize "Big Blue" as if it were one big entity symbolized by it's logo. It is not. Is is a group of people trying to achieve specific goals. So is Ford, and GM, and Chrysler. Sometimes they are successful, and sometimes not.
No matter how disappointed I may be with Ford or IBM's decisions, I am well aware that I do not have the skills to solve all of their problems. I have no right to call them idiots. There may very well be a few idiots in the ranks, but I don't know who they are, and they are not the whole company.
Mullaly is no idiot, nor is Bill Ford, Jim Farley, nor any of the other senior managers at the helm. They are making good strides towards solving the mistakes of the past and deserve some patience and credit. They don't deserve people calling them names out of their own ignorance.
If you live in North America, then find a way to cheer for and support the companies that makes NA strong and your future secure, and stop the BS.