Ford Motor Co. to announce layoffs and plant closings

0 Comments | Deseret News (Salt Lake City), Jan 21, 2006

DETROIT (AP) -- In a survey released this week, Ford Motor Co. ranked last among major automakers in the use of its North American plant capacity. The company aims to change that with a restructuring plan to be announced Monday that likely will include closing some U.S. plants, cutting jobs and changing the company's product lineup.

Already some are wondering if shutting 10 plants and laying off 25,000 hourly workers, as The Detroit News and the Wall Street Journal reported Friday, will be enough to reverse the automaker's billion-dollar losses in North America.

Ford spokesman Tom Hoyt refused to comment Friday on details of the plan, including the number of jobs that will be cut from Ford's North American work force of 122,877. Catherine Madden, an auto analyst at the consulting firm Global Insight Inc., said earlier this week the plants most at risk for closure because of the products they make, including sport utility vehicles and outdated sedans, are in St. Louis; St. Paul; Atlanta; Wixom, Mich.; St. Thomas, Ontario; and Cuatitlan, Mexico.

"Ford is in a very tough position with the amount of cash they have and the changes they need to make," Madden said.

Ford is under pressure to make a dramatic announcement after watching Wall Street's lukewarm response to General Motors Corp.'s restructuring plans in November. GM's shares fell after it announced plans to cut 30,000 jobs and close 12 facilities.