Ford Motor Co. today vowed to accelerate its “Way Forward” turnaround plan by slashing its salaried work force by a third and offer buyout packages to all Ford and Automotive Components Holdings hourly employees in the U.S.
Ford will continue to rely on its commercial Super Duty pickup, the latest version of which is confirmed to go on sale in early 2007 as well as an all-new F-150 that will go on sale in 2008 boasting powertrain, design and feature upgrades.
The company said it will build on its strength “as America’s truck leader” by revitalizing its product mix with 70% of Ford, Lincoln and Mercury products to be new or upgraded from today through the end of 2008.
On the manufacturing front, Ford said:
- Dearborn Truck Plant will add a third crew in 2007 for F-150 truck production.
- An all-new full-size crossover will go on sale in 2008. It will be produced at its Oakville, Ontario assembly plant.
- The Chicago assembly plant is slated to produce the new Lincoln MKS flagship sedan
- Lincoln Town Car production is planned to be moved to the St. Thomas assembly plant from the Wixom (MI) assembly plant. The St. Thomas plant will be reduced to one shift of production.
- Atlanta Assembly will be idled in Oct. 2006
- Batavia Transmission will be idled in 2008
- Essex Engine will cease operations in 2007
- Maumee Stamping is intended to be idled in 2008
- Norfolk Assembly will be idled in 2007 with a shift reduction planned in January 2007
- St. Louis Assembly was already idled in March 2006
- Twin Cities Assembly will be idled in 2008, with a shift reduction planned in 2007
- Windsor Casting will be idled in 2007
- All ACH operations will be sold or closed by the end of 2008
- Including Aaumee Stamping and Essex Engine, Ford has announced plans to cease production at 16 North American manufacturing facilities by the end of 2012, including seven assembly plants
Ford has moved up its timetable for cutting by 25,000 to 30,000 North American manufacturing employees by the end of 2008 from 2012.
Ford is aiming to slash its North American manufacturing capacity by 26% compared to 2005 to stay consistent with consumer demand, the company stated.
These steps will contribute to Ford’s aim to reduce annual operating costs by $5 billion compared with 2005. The automaker has pushed back its target for full-year profitability in North America to no sooner than 2009.