Attention American Car Buyers!

[Trojan]

Ford to Cut Thousands of Jobs and Close 14 Factories

By Sholnn Freeman and Amy Joyce
Washington Post Staff Writers
Monday, January 23, 2006; 11:36 AM

Ford Motor Co. announced today that it will cut as many as 30,000 jobs and shut down 14 factories to help reverse losses in its troubled North American automotive division.

The restructuring announcement came shortly after Ford reported a higher than anticipated 19 percent increase in earnings for 2005. The results included a pre-tax loss of $1.6 billion in its North American automotive division in the fourth quarter, a decline of $3 billion from 2004.

Ford, which employs about 123,000 workers in North America, lost about $5.5 billion in those North America operations in 2005. The restructuring will eliminate about a quarter of those jobs between now and 2012.

With the job cuts announced today, salary-related costs are being cut 10 percent in North America with the previously announced reduction of the equivalent of 4,000 salaried positions by the end of the first quarter. The company's officer ranks also will be reduced 12 percent by the end of the first quarter.

The plan is to return the North American operations to profitability no later than 2008, although chairman William C. Ford Jr. said the company will no longer offer annual profit guidance.

Ford's restructuring announcement follows plans detailed by GM last year to close all or part of 12 plants and cut 30,000 jobs by 2008.

In the fourth quarter, Ford's worldwide automotive sector reported a pre-tax loss of $12 million, an improvement of $458 million from a pre-tax loss of $470 million a year earlier. In the fourth quarter, the automaker earned $124 million, up 19 percent from the quarter a year ago. Ford's special items included charges for restructuring-related costs at Land Rover and Jaguar and the sale of the Hertz car-rental company.

Both Ford and General Motors Corp. suffered from a slide in sales of sport-utility vehicles as gas prices rose.

Don Leclair, chief financial officer, blamed the collapse in SUV sales for Ford's troubles in the North American market. He said Ford anticipated large SUV sales would diminish, but the swift downturn last year was unexpected. "What we didn't know is that change would occur as rapidly as it did," he said on a conference call this morning. "Clearly it was a significant event."

For the year, Ford earned $2 billion in net income, or $1.08 per share. That result was down 42 percent from $3.5 billion the automaker earned in 2004. In its worldwide automotive business, Ford reported a $1 billion pre-tax loss for the year, compared to a $850 million pre-tax profit a year ago. Ford's annual revenue from automotive operations in 2005 was $155 billion, up 5.4 percent from $147 billion in 2004.

Today's announcement will mark the second time in four years that Ford's chairman has stepped forward to outline substantial cuts in the company that bears his family's name. Both Ford and GM are struggling to streamline operations as they respond to slowing sales and intensifying competition from global rivals. Ford's U.S. market share slipped to 17.4 percent in 2005 from 18.3 percent the year before, as the overall market grew slightly. Six years ago, Ford had 24 percent of the U.S. market.

Employees have spent the last two months worrying about their future. Many have known since November that the company would announce its restructuring in January, which would include job reductions. Since then, rumors, speculation and anxiety have been rampant.

Liz Boyd, press secretary for Michigan Gov. Jennifer Granholm (D), said Granholm has met personally with company officials and "has made a pitch to keep every Michigan job." Granholm also "laid out a very aggressive proposal" to keep jobs in Michigan, Ford's home. Boyd would not release details of that proposal.

"This is a time when the auto manufacturing sector is going through tremendous change," she said. "We want those companies to keep every job they have in Michigan."

[Source]

Fellow Americans, it is important for our future economy and independance that we continue to support our American Workers and Companies. You may say that these cars aren't as good as some imports but in fact they have been our life line since the Model T. They've gotten us to and from work, taking the kids to school, to Church to worship God, visit family and friends and much needed vacations for over a Century.

I myself have never owned a foreign vehicle and I've been buying cars and driving for 16 years now and have owned many. It just so happens that I love Ford and until you own a new one and drive it for some time, you may never really appreciate one. America needs your help, our hard Workers need your help, our Economy needs your help, Ford needs your help. Atleast test drive a Fords Mustang GT, or Taurus. Two of the best vehicles you could have on the road. Please consider purchasing any Ford product sometime in your lifetime. Ford is as American as Baseball or more. You can't go wrong and they've got big plans on building us what we need for todays and tomorrows changes. Keep an eye on them and don't forget reading this.

If you don't like Ford, please explain why in a mature sensible manner.

If you like Ford, please say so!

Thank you for reading.

[SilentTrigger]

Or you can buy a Volvo, you will still support Ford! I don't like the cars make because (im not in North America either but I tell anyways) these cars are defenetly not made for our climate, its been almost a guarantee that it will start to rust within one year of use. Which is something Ford refuses to address. I will keep buying Volvos probebly, they are built to hold for the future even in our climate

We had a Volvo 745 (Stationweagon) and it was 17 years old when we sold it, it had no rust what so ever and it was still as good as it was one year after it was built and its still driving around on the roads Our old 245 is still on the road and is still road worthy!

I know several that has had a Ford (new) and they have all started rusting within one year but their volvo they bought later (most did buy a Volvo or a Saab) and they have never had any problems with rust I don't think Ford cars are made for Sweden lol they can't handle the stress of the temp changes I guess

[.Simon.]

yea theres been problem in the ford plant my dad works at over here in wales. it might be closing down too.

[DevilDog#1]

I think if they had a buy one and get 50% off on the second on and both are on 0% financing and cash back, maybe some people MIGHT think about.

My experience with US cars has been horrible. Been through Fords, Chevys, GMs, and Pontiac. I think we need to start making longer lasting cars intead of disposable cars which are being nowadays. Transmissions are horrible. Body erodes like it's made of Chocolate Chip cookies. Why in world would anyone buy such a car? I wouldn't ...

People buy Foreign cars because those cars last longer and have excellent fuel economy. I'm a patriot too but I've a brain also. I can do basic math too. Toyota, Mitsubishi, and Honda are selling more cars because the fuel economy is lot better.

[Roshi]

my dad's plant is one of the plants been closed.......due to be closed in 2008

[DevilDog#1]

I personally know 6 people who are engineers in MI area who work for Ford as a contractor.

[BADDOG]

Originally posted by Roshi
my dad's plant is one of the plants been closed.......due to be closed in 2008

I'm sorry to hear that bro and I hope things work out for him.

Warm Regards and Best Wishes for the future

[Hellfighter]

will if they made better parts and do a better service for the buyer, there be on top of it all.

imports are not doing it to them it the service and break down of ford trucks and cars.

crap my mom owns a Toyota car, without break down for 8yrs now and still going stronge. only thing it really need is a new paint job on the body, old paint on the car is fading out, no rust at all. think her car is a 1992 or 1994 model.