Ford (Motor) to seek 30% cut in salaried, other costs: WSJ

[UpInArms]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB7445C34%2D2AAE%2D49EF%2D9B8F%2DA6EA61CC7353%7D&siteid=mktw&dist=bnb

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. (F : 9.07, +0.36, +4.1% ) will try to cut white-collar staffing, benefits and other costs by 30% as part of a larger restructuring plan, according to a media report late Tuesday. The Detroit-based automaker's board is expected to begin reviewing the restructuring effort tomorrow, the Wall Street Journal reported in its Web site, citing sources. Ford will aim to cut back mostly on managers and supervisors, and the cuts will take place through the rest of this year and into 2007, the report said. The company has about 35,000 salaried workers in the U.S. Details of the cost-cutting efforts could be disclosed as soon as Friday. Ford's board is also expected to hear details about a new vehicle pricing strategy, the Journal reported.

...short blurb...

[ChairmanAgnostic]

1. B-b-b-b-b-b-but,

every repuke on TV today said that our economy was incredibly strong!
You must be lying to us. Why do you hate Amerika so?

[OrangeCountyDemocrat]

3. Things Are GREAT!

Especially for those people not working for companies that are laying off massive amounts of employees.

For those employees....not so much.

[Psephos]

14. Let me guess: you don't have a Ford parked in your driveway

Neither do I. Mine's a Chrysler.

We gotta buy Fords if we want to see Ford workers. Same for other American makes. Dress it up anyway you like but that simple truth will not change.

At least, buy an Ohio Honda or a Tennessee Nissan, and some of the money will end up in an American autoworker's pocket.

Peace.

[ChairmanAgnostic]

16. unfortunately, I have a Ford POS AND a GM POS

My mistake for buying domestic.

Nothing but trouble from both vehicles.

[Botany]

2. Hope they voted for bush

n/t

[napi21]

4. They're just pulling a page out of the Airline playbook.

That's what all the airlines did too! The problem is, the airlines got almost all the cuts they wanted, but they're still in trouble financially, and NOT ONE SINGLE EXECUTIVE LOST ANY OF HIS PENSION OR RETIREMENT BONUS, and few took any kind of cut at all!

[madville]

5. Not surprising

They have to start trying to compete in the payroll department with Toyota, Nissan, and Honda who have mostly non-union plants in southern or rural states. Hell Ford already has plants in Mexico and uses cheaper, lower quality parts than the "foreign" auto industry. It's the how-low-can-you-go strategy now except when it comes to CEO and board member salaries of course though :eyes: If they aren't doing it yet I see them trying to elminate their white collar jobs all together at some point and outsource all their accounting, engineering, customer service, etc to India or something like the computer industry has done.

[hughee99]

6. As long as Ford continues on the path they are now...

Producing vehicles that are priced beyond their quality would dictate and not geared toward the market, they'll have issues in any economy.

[aquart]

7. Is that EXECUTIVE salaries?

Get back to me when it is.

[Lindacooks]

13. My thought too.

And didn't I just read that the CEO of Ford is pulling down 18 mil this year alone?

[aquart]

15. Is that salary, bonus, or combination of same?

And how many jobs could he save with ten million of it?

Am I foolish in thinking a decent man could live well on $8 million a year?

[Lindacooks]

18. Actually, I was wrong. The 18 mil is just a 'signing bonus'.

if you can believe that. He gets 2 million a year in 'salary', plus huge stock options and an 11 million dollar golden parachute.

Sheesh.

"The one-time payments include a hiring bonus of $7.5 million ($NZ11.7) and $11 million ($NZ17.2) to offset the compensation Mulally gave up for ending his tenure as head of Boeing Co.'s profitable commercial plane division, Ford said in a filing with the U.S. Securities and Exchange Commission.

Mulally, 61, was also granted stock options worth about $10.5 million ($NZ16.4) and $5.26 million ($NZ8.23) in restricted stock grants, according to details provided by Ford.

A clause in Mulally's contract also entitles him to a payment of $11 million if Ford undergoes a change in control or he is let go for any reason other than "cause" before 2011, Ford said in its regulatory filing.

Ford has also agreed to waive the vesting requirement on Mulally's stock options and restricted stock grants in such a case. The SEC filing did not specify what would constitute a cause for termination under the contract."

http://www.stuff.co.nz/stuff/0,2106,3794877a30,00.html

[Wilber_Stool]

8. I think labor has made just about all of the concessions it can.

Advertising cost even more than labor so I think it's time they dropped their rates 25-30%. And when you consider how ineffectual that advertising is, mabe they should cut it to half.

[acmejack]

9. Advertising is part of the reality that keeps people sated.

Can't cut that, need those folks and all those high paying positions that those funds feed. The donations that the money that flows to firms like GSD&M. They donate a ton to people like W. Just like the Pharma Companies, they spend what, 33% of their revenue on advertising?

[Anakin Skywalker]

10. Bush: "The economy is strong"

Yes, now go and buy more Wal-Mart shits!

[AX10]

11. More executive salaries. This is the gutting of America by...

exstremist conservatives and libertarians who want a two class society: The Powerful and the Pauper!

We must take back the congress this fall!

[fever]

17. What Will Congress Do?

Do you really think Congress, no matter who controls it, can change what's happening to Ford? The fact is Ford workers are significantly less productive than Toyota workers and getting rid of them is long overdue. It's also important to note, the automotive industry is doing great.

[fujiyama]

12. Interesting and not surprising

that I have a friend that got a job there recently through a contracting agency. It's hourly and that way you the company has to pay less and isn't responsible for benefits.