Ford Motors (US) could cut a third of top managers

[Bud Bud]

Hi Guys, just read this today. It seems that a lot of pain is still about to happen for FORD U.S. and that Ford in general still has long way to go before the Company is standing on a sure foot again.

The thing that I worry about here is that the funds needed to get the Company going again may interfere with future funding for vehicle development. They could be slashed in the same way that GM had shelved a lot of the global plans for the ZETA platform that Holden developed because of the same predicament that Ford face as well. Lucky for Holden that GM is now revisiting ZETA.


Ford Motors could cut a third of top managers

15/09/2006 - Struggling motor company Ford plans to cut up to a third of its top managers and executives in the US, sources within the company said on Thursday.

Up to 25 per cent of other white collared jobs in the company's basic automotive operations in the US could be eliminated under a plan that is currently circulating inside the company, sources indicated.

The plan is the next step in the car manufacturer's restructuring plan and could be approved by the company's board of directors as soon as Friday.

Ford spokeswoman Marcey Evans said under no circumstances would she comment on or react to speculation about the next steps in the company's restructuring plan, which are expected to be announced later this month.

Evans also declined to comment on the company's ongoing discussions with the United Auto Workers (UAW) union over the possibility of further job cuts.

"We don't comment on private discussion," she told AFP.

Union leaders from Ford plants around the US met in Detroit earlier this week to get an update on the discussions with Ford about buyouts or early retirement packages for older workers.

One key issue in the talks has been Ford's apparent reluctance to follow the lead of General Motors (GM) and sweeten the early retirement package for employees who have worked for the company for nearly 30 years.

Ford appears reluctant to match GM's offer of full benefits with early retirement, union officials said privately.

In addition, the union and the company have agreed to some two-dozen competitive operating agreements that are designed to help make Ford's operations more efficient. The agreement must still be ratified by union members.

At least part of the reason for the cuts in the salaried ranks is that the company has pledged to eliminate various layers of supervision as part of the drive for greater efficiency.

Thursday's board meeting marked the first official appearance of Alan Mulally, who is slated to take over as Ford's chief executive officer at the beginning of October. Bill Ford will continue to serve as the company's chairman.