Ford Lowers Dividends In Fourth Quarter

Autoparts Report, Oct 19, 2001

Ford Motor Co. declared a fourth-quarter dividend of 15 cents a share on the company's Class B and common stock. This represents a 50 percent decrease from the 30 cents per share paid in the third quarter of 2001.

"The dividend reduction is a difficult but necessary action," said Jacques Nasser, president and CEO. "A number of factors have converged in the last six months to dramatically impact our company and our operating results. The tragic events of Sept. 11 have compounded those difficulties by weakening consumer confidence in an already weak global economy. Recognizing there are challenging days ahead, we are taking aggressive actions to address the issues that face our company."

Other actions already taken this year include a voluntary separation program for 4,000-5,000 salaried employees; targeted reductions in capacity such as eliminating a shift at Michigan Truck; eliminating overtime at several other North American assembly plants; implementing a hiring freeze; and reducing travel, contract workers and other expenses. Further actions will be announced in December.