2010 Ford Fusion Hybrid - Click above for high-res image gallery
The auto industry's putrid performance in May was an eye opener, and companies like Ford now have to readjust the adjustments they just made to their turnaround plans. Ford VP Jim Farley already braced his white-collar work force for a possible 12% reduction in their ranks, but a memo emailed today by Mark Fields, Ford's President of the Americas, reveals that the number of white-collar workers "reduced" will actually be 15%. Fields says in his memo (full transcript posted after the jump) that t
Over 2006 and 2007, Ford lost $15.3 billion. Over that same time and in light of those losses, the company also shed 33,600 union workers through buyouts and early retirement. Still working through the uphill part of the turnaround, Ford has announced it wants to eliminate another 8,000 to 9,000 factory jobs through buyouts.
Ford is arguably the domestic maker in the most trouble, and it appears the UAW has allowed more concessions for Ford than for either of the other two domestic car car makers in its contract negotiations. With combined savings from the end of health care obligations, revised rules on hiring, salaries, and classifications, Ford will be able to put $2 billion more in its coffers every year.
Alan Mulally took over as Ford's CEO one year ago this month, and some of you may be wondering how he's doing. Business Week magazine says he's doing pretty good, actually, despite a 16% decline in sales last month, a stock price less than the cost of a used CD and the piecemeal selloff of PAG.
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