'Black Monday' looms over Ford's future
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'Black Monday' looms over Ford's future - 1/23/2006 10:07:59 AM
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Midnight
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DetroitNews.com Link - More info...
'Black Monday' looms over Ford's future
Ten plants, 25,000 jobs ride on Bill Ford's 'Way Forward' strategy to be announced Monday.
Bryce G. Hoffman / The Detroit News
Ford Motor Co. workers already have a name for tomorrow.
"It's Black Monday," said Mark Mockaitis, a line worker at Ford's assembly plant in St. Paul, Minn.
Like workers from Wixom to St. Louis to Mexico, Mockaitis is anxiously awaiting Monday morning when Chairman and Chief Executive Officer Bill Ford Jr. takes the podium in Dearborn to outline a massive restructuring plan he calls the "Way Forward."
As The Detroit News first reported Dec. 7, Ford will shutter at least 10 assembly and parts plants and cut at least 25,000 blue-collar jobs in North America over the next five years, according to people familiar with the plan.
The automaker also plans to cut 4,000 salaried jobs by April 1. The layoffs begin this week. Ford also will commit to reducing its number of top executives by March 1.
While workers like Mockaitis wonder where their jobs will be tomorrow, Wall Street waits to see whether the plan goes far enough.
The company that led America to greatness and put the world on wheels now faces one of the biggest challenges in its 103-year history. And for Bill Ford, the great-grandson of Henry Ford, the stakes are not only the fate of a storied company, but the legacy of one of America's last great dynasties.
"It's the most serious crisis at Ford in modern times," said David Cole, head of the Center for Automotive Research in Ann Arbor. "I think they view this as a last shot."
The situation could hardly be more critical. Ford's market value has plunged by an astonishing $40 billion since 2001. Its North American automotive business is hemorrhaging cash and market share.
Ford posted a net profit of $1.88 billion for the first nine months of 2005, but its North American unit has lost more than $1.4 billion before taxes. The numbers are expected to look even grimmer Monday when final 2005 financial results are reported.
Meanwhile, Ford's domestic brands -- Ford, Lincoln and Mercury -- saw their combined share of the U.S. market fall 4.7 percent last year, from 18.3 percent in 2004 to 17.4 percent in 2005. A decade earlier, Ford's market share stood at nearly 25.6 percent. Every percentage point of market share represents 170,000 vehicles.
"We do have a North American auto business issue and we are committed to fixing that," Bill Ford said. "It's going to be painful for some people."
So far, Ford has responded by cutting its white-collar work force, selling its Hertz rental car business and reshuffling senior management. But one fundamental reality remains unchanged.
Ford's North American manufacturing operations still look a lot like they did when the company built one out of every four cars and trucks on the road. Ford has the factory capacity to build 4.5 million vehicles in North America, but produced just 3.3 million last year. As a result, Ford's factory utilization rate is the lowest in the industry -- just 79 percent, Harbour Consulting said last week.
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 11:17:37 AM
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highrevr/tflea
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Thats a lot of jobs for restructuring...I cant help but think ford is going to poopoo more and more.
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 11:22:25 AM
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DevilsReject
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Even the best of companies get too big and have to downsize....this isnt the end for Ford....
DCX and GM have all gone thru these phases....and since other companies are getting bigger, it only stands to reason that someones gotta give up a lil something in return....
Also, just because they are restructuring, doesnt mean they will get worse.....it might actually help them to actually build some quality products for a change 
Yeah, I might as well ask to win the lottery....
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 12:21:07 PM
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BadStratRT
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those guys are all union workers, so they do receive some money to keep them afloat when laid off...
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 1:03:43 PM
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nickoman01
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quote:
ORIGINAL: BadStratRT
those guys are all union workers, so they do receive some money to keep them afloat when laid off...
thats a damn shame.
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 1:08:04 PM
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BadStratRT
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arent you a union member?
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 1:12:58 PM
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nickoman01
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quote:
ORIGINAL: BadStratRT
arent you a union member?
not by choice. anyways did wixom close?
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 2:54:35 PM
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ViperGTS
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quote:
Ford's market value has plunged by an astonishing $40 billion since 2001
Ford planned this far ahead with boring vehicles, lack of performance, and giving no real reason why to buy a Ford.
-Matt-
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 3:07:37 PM
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deranged
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On a related note, my Nephew is now a Mopar convert after having owned a new Grand Am, Impala and Monte Carlo that all had "issues", he is now the proud owner of a Cool Vanilla Dodge Magnum 3.5 High Output! I think an Uncle had undue influence in his decision.
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 3:10:09 PM
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2coff
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Know whats sad, on average the CEO's of these companies make 10% of the company profits, but when things go wrong it's they poor guy on the assembly line barely feeding his family who gets fired.  Welcome to corparate America, it's pretty sickening.
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 3:55:39 PM
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bigddy9
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quote:
ORIGINAL: 2coff
Know whats sad, on average the CEO's of these companies make 10% of the company profits, but when things go wrong it's they poor guy on the assembly line barely feeding his family who gets fired. Welcome to corparate America, it's pretty sickening.
You show me one line worker for teh Big 3 that is "barely feeding his family". Theses are people who make 50K working 40 hours a week....some are over 100K with overtime. I'm not saying they don't deserve it, but stop making it sound like the line workers are some poor shlubs who are defaulting on mortgages. I personally know of several line workers who live in houses that cost upwards of 600K....and I'm not sure where you got your numbers, but 10% of profits go to CEO's? I think you are seriously exaggerating that number.
Danny
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 3:59:57 PM
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techmanbd
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quote:
ORIGINAL: BadStratRT
those guys are all union workers, so they do receive some money to keep them afloat when laid off...
Yep, from what I read the get paid until a new contract is made in 2007
"Under the company’s existing contract with the United Auto Workers, workers at the idled plants will continue to get most of their pay and benefits until a new contract is negotiated next year. However, they may not make what they earn today because they won’t be eligible for overtime"
Got this from the MSNBC news
Now, this irratates me. The part about OT. Noone should ever plan their finances on OT. If they do, they are morons. That is howcome people get so far into debt then expect others to bail them out. So even stating they won't get OT like it is a bad thing is crap.
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 5:48:33 PM
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nickoman01
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quote:
ORIGINAL: 2coff
Know whats sad, on average the CEO's of these companies make 10% of the company profits, but when things go wrong it's they poor guy on the assembly line barely feeding his family who gets fired. Welcome to corparate America, it's pretty sickening.
wow you never seem to fail to amaze me. you just say one stupid ass thing after another with absolutely no idea what you are talking about. it is quite entertaining actually.
you should move to Iraq and join a terrorist group, because everything i ever hear from you is anti America, anti government, or anti American workers. this case falls under anti American workers. its a shame these people have to lose there job, but if they got an education they wouldn't of been in that position in the first place. they created there own problems. granted it isn't the line workers fault ford cant engineer worth a shit, but that is how things are. when there is no profits, no one gets anything extra. whats 10% of 0? now when there is no profits and they lost money, where would you make it up for the next year. the CEO's who must be replaced or the workers at factories who are overpaid and operate double plants. the wixom plant makes Lincoln town cars and LS's which even with the plant closed will continue to be produced. whats the point of keeping that plant open to pay the over priced workers when they are making vehicles that are being made elsewhere anyways.
now when you are cutting down the CEO's who actually make the company work and operate, you are being anti American workers. those people matter alot, and they are American workers. stop trashing them because you are to much of a failure at life to become one.
as much as i would like to blame fords **** models, the real problem is the UAW. between health care and the overpriced workers they are actually running those workers jobs into the ground.
< Message edited by nickoman01 -- 1/23/2006 5:49:40 PM >
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 6:15:09 PM
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dustyloins
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The government won't let Ford go under, they'll bail them out like they did DCX back in the Lee Iacocca days.....
Dusty
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RE: 'Black Monday' looms over Ford's future - 1/23/2006 6:19:04 PM
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nickoman01
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quote:
ORIGINAL: dustyloins
The government won't let Ford go under, they'll bail them out like they did DCX back in the Lee Iacocca days.....
Dusty
your right they will, and GM too.
2coff, I'm sorry that our government wants to save American jobs. this is our horrible government trying to save the American jobs you criticize plus some other peoples job.
< Message edited by nickoman01 -- 1/23/2006 6:20:44 PM >
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“No one is above the law (except me) and no one is beneath its protection.”
quote:
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