On Ford Motor Company...

[Subdivisions]

Why does Ford (and other automakers like Daimler-Chrysler) cover their obvious move from the US to Mexico, China, etc. by trying to tie it to their financial situation here in the US.

They say they have to reduce their workforce by up to 30,000 and are offering to buy off hourly workers on the basis that they are not making any money. Yet, at the same time, they are actually hiring people in other countries and building manufacturing plants in other countries.

Why don't they just come right out and say it: We are moving out of the US because we can no longer afford the living wage we currently pay our US employees and because labor is cheaper in other countries.

[Fierce]

1. Because it's not the wage. It's the health care.

nt

[INdemo]

14. Yes it is health care

If the average age of the workforce is younger this will lower the costs some,not much but enough for substantial savings.This is happening in just about every industry..If not buy outs than the companies are actually forcing the older workers out that have perhaps several years before they actually want to retire.Ford,GM,all of them want the older workers out so they can have a lower tier wage...Which will be less than half of the current scale.

[still_one]

2. Ford is talking about a 9 billion dollar loss

[notadmblnd]

3. What they all fail to realize is that, those cheap labor countries

aren't going to buy their cars. Neither are the 75,000 people who jobs will have been cut. It's be said that for every GM, Ford, or Chrysler worker that loses his jobs, something like 8 other jobs from various other industries go with it. Cutting 75,000 more jobs may get them short term gains with Wall Street, but in the long run, they're just putting another nail in their own coffin.

[redqueen]

9. That's the problem with most US companies...

they don't think long-term.


Prevention vs. Cure, for example. Insurers still makes a bundle, so why should they care?

[zbdent]

4. Notice nobody's sounding the Death Knell for Ford, even though they're

"restructuring" ... and rumors fly about the demise of Air America Radio after the 512th claim that they've filed bankruptcy? (AAR's "restructuring", too ...)

[still_one]

5. actually there has been talk for over a year if Ford will surive

[Clark2008]

15. They'd better survive! I don't know what else I'd drive.

I REFUSE to buy, excuse the term, "rice burners." I hate Japanese cars: no personality, what-so-ever!

I'm a Mustang girl. I don't think I could get used to driving a Dodge Charger or a Chevrolet Camero (and I have a kid, so a Vette's out of the question - no back seat).

[still_one]

18. Obviously the majority of consumers in the U.S. do not agree

of course that may change, but I would assume that Ford will diversify their product line, and surive

[Cerridwen]

6. Is this another case in which the CEOs' benefits packages are

"bankrupting" the company and so, of course, they'll get rid of the people at the lower levels to compensate?

[redqueen]

10. Exactly. Thank you.

Executive pay and benefits are doing poorly too, are they?

:rofl:

[sadiesworld]

7. We dodged the bullet here in Louisville, KY today...

the two announced plant closings will be in Ohio and Canada (sorry guys). Of course, they have at least seven more closings planned in the next few years so I doubt we'll remain unscathed.

[redqueen]

8. Hah... or how about we look into their executive pay, hmmm? n/t

[noonwitch]

11. Ford will survive in the long run

I think the new guy they hired will save them.

[PassingFair]

13. Yes, a messiah will save everyone.

"the new guy" will solve it all.

[Blackhatjack]

12. Just Another Step In Dismantling US Labor Unions and Workers

...Who does not get it?

Ford walks away from healthcare benefits, pension funds, substitutes cheap foreign labor for US workers, literally destroys US Unions, and maintains the inflated salaries at the top and shareholder equity.

The American worker once again gets the shaft, salaries at the top are maintained, and the manufacturing costs improve with cheap foreign labor leading to corporate profits(which by the way will be largely shielded from taxation in this country).

Nothing new here, just move along.

[kaygore]

16. Ford is closing its most productive plant with highest quality

ratings consistently in Norfolk, VA, thus ending a partnership that had generations of Norfolk families working for the Ford plant.

Ford wanted to build big cars and trucks and pay outrageous compensation to its executives rather than putting money into fuel saving technology research. They lobbied congress not to raise the fuel mileage. Look where it got them.

I shall NEVER buy another Ford.

[Clark2008]

17. Speak for yourself.

While I agree that they're being short-sighted, I think this experience will smack some sense into them regarding corporate pay.

However, I have no earthly idea what your talking about in regards to "big" cars. The Mustang, Taurus, Escort and Festiva are NOT "big" cars. They all get descent gas mileage, too. I think too many Americans still think it's 1979 and that American cars aren't good, which they are, and that's 90 percent of the problem. Poor PR hanging around for nearly two decades.

I shall never purchase a rice burner. Ever.

[raccoon]

19. Back in the 70's the same experience should have taught them and

GM's big shots.