Quittin' Time: Half of Ford Workers Take Buyouts
12-01-06, 05:41 AM
#1
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Quittin' Time: Half of Ford Workers Take Buyouts
Date posted: 11-30-2006
DEARBORN, Mich. — The Ford Motor Company says 38,000 hourly workers, or 46 percent of its U.S. hourly workforce, have accepted early retirement or buyouts of $35,000-$140,000.
At the same time, the automaker says that operating losses and the cost of downsizing will produce a negative net cash flow — the difference between outgoing and incoming cash — of $13 billion from 2007-'09.
The good news from Ford is that it is ahead of its goal of cutting 30,000 hourly jobs by the end of 2008. The automaker is on track to close nine plants by that time. The high acceptance rate among Ford workers has surprised industry analysts and observers. In contrast, only about 30 percent of eligible General Motors workers took buyouts earlier this year.
Earlier this week, Ford said it had lined up $18 billion in loans and credit lines to offset the cash drain during restructuring. The company is expected to burn through $3.6 billion in the current quarter alone. Ford also will stop dividend payments next year in the face of its financial woes. The company says it expects to be profitable by the end of 2009.
As for product impact, Ford discloses that its new financing package will allow it to sell Jaguar and Land Rover, although the automaker has denied plans to do so. Ford has tapped into the equity of Volvo Cars and Ford Credit as collateral for the new loans, so those two entities cannot be sold easily.
What this means to you: Ford has become the incredible shrinking car company, essentially slashing its workforce in half in the hopes of becoming healthy again.
Source: http://www.edmunds.com/insideline/do...ticleId=117785
DEARBORN, Mich. — The Ford Motor Company says 38,000 hourly workers, or 46 percent of its U.S. hourly workforce, have accepted early retirement or buyouts of $35,000-$140,000.
At the same time, the automaker says that operating losses and the cost of downsizing will produce a negative net cash flow — the difference between outgoing and incoming cash — of $13 billion from 2007-'09.
The good news from Ford is that it is ahead of its goal of cutting 30,000 hourly jobs by the end of 2008. The automaker is on track to close nine plants by that time. The high acceptance rate among Ford workers has surprised industry analysts and observers. In contrast, only about 30 percent of eligible General Motors workers took buyouts earlier this year.
Earlier this week, Ford said it had lined up $18 billion in loans and credit lines to offset the cash drain during restructuring. The company is expected to burn through $3.6 billion in the current quarter alone. Ford also will stop dividend payments next year in the face of its financial woes. The company says it expects to be profitable by the end of 2009.
As for product impact, Ford discloses that its new financing package will allow it to sell Jaguar and Land Rover, although the automaker has denied plans to do so. Ford has tapped into the equity of Volvo Cars and Ford Credit as collateral for the new loans, so those two entities cannot be sold easily.
What this means to you: Ford has become the incredible shrinking car company, essentially slashing its workforce in half in the hopes of becoming healthy again.
Source: http://www.edmunds.com/insideline/do...ticleId=117785
12-01-06, 04:01 PM
#4
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HAHAHAHA I can't wait to see my die hard Ford friends to let them know that ford is about to die hard. I'm a huge GM fan myself and trust me, I know thier not in the best shape right now either but it looks like Ford is in worse shape.
12-01-06, 09:43 PM
#5
I'd love to see Jaguar get sold off though. I'd like to see some NICE cars for a change.
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