Ford to shed 14,000 jobs

Ford Motor Company is to cut 14,000 jobs from its workforce as it looks to cut annual costs by $5 billion in its accelerated restructuring scheme.

    The car maker lost $1.4 billion in the first half of the year

    The number two car manufacturer in the United States said on Friday that its troubled North American car operations would not be profitable until major restructuring is completed in 2009.

    Ford also said it will suspend its quarterly dividend, further reduce capacity, and introduce new products as part of its accelerated restructuring scheme.

     

    The new proposal is Ford's third restructuring plan in five years. It replaces the initial "Way Forward" plan, which was announced in January and called for cutting 30,000 jobs and closing 14 plants by 2012.

     

    "These actions have painful consequences for communities and many of our loyal employees," Bill Ford, the chairman, said.

     

    "But rapid shifts in consumer demand that affect our product mix and continued high prices for commodities mean we must continue working quickly and decisively to fix our business."

     

    Following Ford's $1.4 billion loss in the first half of the year amid declining sales of its high-margin pickup trucks and sports utility vehicles, the car manufacturer promised a more aggressive restructuring plan.

     

    The company and the United Auto Workers union said on Thursday that Ford will be offering buyout packages to all of its 75,0000 -strong US factory workers.

    SOURCE: Reuters


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