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| Ford cutting thousands of US jobs | Ford cutting thousands of US jobs |
| (about 8 hours later) | |
| Ford is cutting 14,000 white-collar jobs in North America as it tries to turn round its flagging business. | Ford is cutting 14,000 white-collar jobs in North America as it tries to turn round its flagging business. |
| It is also to close 16 factories by 2008, instead of shutting 12 by 2012 as previously announced. | It is also to close 16 factories by 2008, instead of shutting 12 by 2012 as previously announced. |
| It said these measures would help it reduce annual costs by about $5bn (£2.65bn) by the end of 2008. | It said these measures would help it reduce annual costs by about $5bn (£2.65bn) by the end of 2008. |
| Ford had earlier said it would offer redundancy and early retirement packages to all of its 75,000 unionised US blue-collar workers. | Ford had earlier said it would offer redundancy and early retirement packages to all of its 75,000 unionised US blue-collar workers. |
| Loss-making prediction | Loss-making prediction |
| About 4,000 of the 14,000 job cuts have already been made earlier this year, Ford said. | About 4,000 of the 14,000 job cuts have already been made earlier this year, Ford said. |
| Redundancies of 25,000 to 30,000 of its hourly-paid workers - primarily involved in making and assembling parts for new vehicles - were announced earlier but will now be completed by 2008, four years ahead of the previous schedule. | Redundancies of 25,000 to 30,000 of its hourly-paid workers - primarily involved in making and assembling parts for new vehicles - were announced earlier but will now be completed by 2008, four years ahead of the previous schedule. |
| The steps we are announcing are clearly needed to ensure the ultimate turnaround of the business in Ford's biggest market Alan Mulally, Ford chief executive href="/1/hi/business/5350904.stm" class="">Rocky road ahead for Ford | |
| Ford said it would close an engine factory in Essex, Ontario, Canada, next year, and a stamping plant in Maumee, Ohio, US, in 2008. | Ford said it would close an engine factory in Essex, Ontario, Canada, next year, and a stamping plant in Maumee, Ohio, US, in 2008. |
| An assembly plant in Norfolk, Virginia, US, will close in 2007, one year ahead of schedule. | An assembly plant in Norfolk, Virginia, US, will close in 2007, one year ahead of schedule. |
| And the firm, which posted a $123m (£66.5m) loss in the second quarter 2006, also now says its US plants will not see profit until 2009. | And the firm, which posted a $123m (£66.5m) loss in the second quarter 2006, also now says its US plants will not see profit until 2009. |
| Ford will also suspend its share dividend payout as part of the cost-cutting. | Ford will also suspend its share dividend payout as part of the cost-cutting. |
| "The steps we are announcing today are clearly needed to ensure the ultimate turnaround of the business in Ford's biggest and most important market," said chief executive Alan Mulally. | "The steps we are announcing today are clearly needed to ensure the ultimate turnaround of the business in Ford's biggest and most important market," said chief executive Alan Mulally. |
| As Ford's European operations are profitable British employees are unaffected by the announcement. | As Ford's European operations are profitable British employees are unaffected by the announcement. |
| Argus Research analyst, Kevin Tynan, said that Ford was likely to continue losing market share. | Argus Research analyst, Kevin Tynan, said that Ford was likely to continue losing market share. |
| "That's going to be painful because that share is going to slip below the 15% they anticipate," he said. | "That's going to be painful because that share is going to slip below the 15% they anticipate," he said. |
| "It will go to about 12 or 13% before it stabilises so there will need to be additional costs taken out." | "It will go to about 12 or 13% before it stabilises so there will need to be additional costs taken out." |
| He added: "Historically, the last thing the family wants to do is cut the dividend, so to suspend it speaks to how serious the situation is." | He added: "Historically, the last thing the family wants to do is cut the dividend, so to suspend it speaks to how serious the situation is." |
| Independent review | Independent review |
| When it first floated its redundancy programme the troubled firm said it was prepared to make individual buyout offers of up to $140,000 (£74,100). | When it first floated its redundancy programme the troubled firm said it was prepared to make individual buyout offers of up to $140,000 (£74,100). |
| Separately, two senior Ford executives, including chief operating officer Anne Stevens, announced they were stepping down a week after new chief executive Alan Mulally replaced former boss Bill Ford. | Separately, two senior Ford executives, including chief operating officer Anne Stevens, announced they were stepping down a week after new chief executive Alan Mulally replaced former boss Bill Ford. |
| In January, the Detroit-based company had said it would cut up to 30,000 jobs and close 14 plants by 2012. | In January, the Detroit-based company had said it would cut up to 30,000 jobs and close 14 plants by 2012. |
| In July, Ford hired an independent adviser to carry out a strategic review of the business in an effort to return to profitability. | In July, Ford hired an independent adviser to carry out a strategic review of the business in an effort to return to profitability. |
| And last month, it announced its luxury UK car brand Aston Martin - made famous by James Bond - could be sold off under its shake-up plans. | And last month, it announced its luxury UK car brand Aston Martin - made famous by James Bond - could be sold off under its shake-up plans. |
| There are also suggestions that Ford needs to cut back on the number of models it makes under its eight brands. | There are also suggestions that Ford needs to cut back on the number of models it makes under its eight brands. |
| Ford currently operates the Ford, Land Rover, Mercury, Lincoln, Jaguar, Volvo and Aston Martin brands, and has a joint operation with Japan's Mazda. | Ford currently operates the Ford, Land Rover, Mercury, Lincoln, Jaguar, Volvo and Aston Martin brands, and has a joint operation with Japan's Mazda. |
| Around the globe Ford employs a total of 300,000 workers. | Around the globe Ford employs a total of 300,000 workers. |
| Are you a Ford employee? How will you be affected by the potential job cuts? Send us your experiences using the form below: | Are you a Ford employee? How will you be affected by the potential job cuts? Send us your experiences using the form below: |