As speculated - Ford to make deep cuts(35K)

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Repolishing the Blue Oval

Auto Giant Ford Announces 35,000 Job Cuts; Closing 5 Plants

D E A R B O R N, Mich., Jan. 11 — Ford Motor announced today 12,000 manufacturing layoffs and five plant closures as part of overall job cuts of 35,000 worldwide, including 22,000 in North America. "These steps build upon what we've already done. … It's a comprehensive plan, but it's not a magic wand," William Clay Ford Jr. said from company headquarters in announcing the plan designed to return the world's No. 2 automaker to profitability.

"We strayed from what got us to the top of the mountain, and it cost us greatly," he said. The automaker said it planned to close plants in Edison, N.J.; Oakville, Ontario; Avon Lake, Ohio; St. Louis; and Dearborn, Mich., and eliminate production of the Ford Escort, Mercury Cougar, Mercury Villager and Lincoln Continental.

Ford said it was taking a $4.1 billion one-time charge to pay for its plan.

The plan also includes the suspension of bonuses for company managers and the elimination of 401(k) matches for employees.

For Ford, the need to restructure so severely represents a complete change from its position just a year ago, when it reported a $6.67 billion profit for 2000.

In the third quarter of 2001, Ford lost $692 million and when it releases its fourth quarter financial statement Jan. 17, it is expected to report its third straight losing quarter.

"For most of the last decade the Ford Motor Company was on a roll," Ford Jr. said. "The great success we enjoyed may have caused us to underestimate the strength of our competitors."

Ford said he would accept no salary.

-- Anonymous, January 11, 2002


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