Today, Ford decides who goes
By CHRIS WOODYARD
USA Today
The fate of thousands of jobs in several plants hangs in the balance today as Ford Motor's board of directors is expected to decide the automaker's restructuring plans.
Results of the regularly scheduled meeting, which began yesterday, aren't likely to be disclosed until next month, says Ford spokesman Tom Hoyt. Until then, he says, Ford won't give any hints as to where the ax could fall.
No matter what the eventual numbers, Ford has to take drastic action, says David Cole, chairman of the Center for Automotive Research. "The deal is pretty straightforward: It's shrink or die. ... A ton of plants are going to have to close."
Ford announced last month that it will cut about 10 percent of its salaried, white-collar staff in North America — 4,000 jobs — as part of its drastic cost-slashing program. Many of those cuts were expected to come through layoffs.
Behind the expected plant closings, which will slash union jobs:
It was the first time since 2003 that Ford failed to post a quarterly profit. In announcing the loss, CEO Bill Ford said: "Our industry is beginning a dramatic restructuring, which is sorely needed." He also brought in a new president for Ford's Americas operation, Mark Fields.
Even with job cuts and plant closings, the restructuring may not be significant enough, says Brad Marion, head of the automotive practice for executive search firm Korn/Ferry International.
"My fear is the pace of change and sense of urgency are not going to descend down into the organization and take effect," Marion says. He adds that "scarcely a day goes by" when he doesn't receive a call from an unhappy Ford executive looking to bail out of the company.
The average car buyer probably won't notice the plant closings or job losses, says Dan Gorrell, analyst for consultant Strategic Vision. "It will be invisible until it starts to pull the economy down. Then it will affect everybody," he says.
