Ford Offers Huge Workforce Buyout

Ford Offers Huge Workforce Buyout

UAW President Ron Gettelfinger said its members have made hard
choices under difficult circumstances. "Now, it's Ford Motor Co.'s
responsibility to lead this company in a positive direction - which means
using the skills, experience and dedication to quality that UAW members
demonstrate every day in order to deliver quality vehicles to customers,"
Gettelfinger said in a statement. http://www.cnn.com/2006/BUSINESS/09/14/ford.cuts.ap/index.html

As Ford Motor Co. prepares to announce another huge restructuring plan, a key component has become clear -- buyout and early retirement offers to the company's entire U.S. hourly workforce of 75,000. This move is drastically designed to drastically chop Ford's labor costs was announced Thursday afternoon by the United Auto Workers union. Ford has been battered by the auto market's shift from trucks and sport utility vehicles to more fuel-efficient cars and crossovers. Its market share and sales have dropped while its Japanese competitors have gained. This gain in overseas market is due to the cheaper labor and out-sourcing. Japanese companies recognized the high price of oil and gasoline and made snarter decisions faster than American companies, such as Ford. Because the demand for more fuel fuel-efficient cars is high, the sales of Ford's SUV's and nonfuel-efficient cars have gone down greatly. Due to Ford's poor product decisions until now, they were forced to make this restructuring plan.