DEARBORN, Mich. (Jan. 23, 2006) — Ford Motor Co. will cut 25,000 to 30,000 jobs and idle 14 plants in a cost-reduction plan aimed at restoring profitability in North America by 2008 and eliminating at least $6 billion in costs by 2010.
Ford's plan, dubbed “The Way Forward,” in North America will, it said, focus on more clarity for its Ford, Lincoln and Mercury brands, a renewed commitment to design, safety and technology innovation, new product investments, cost reductions, straightforward pricing, lean manufacturing and jobs cuts.
Ford said it will idle 14 plants—including seven assembly plants—by 2012, reducing its assembly capacity by 1.2 million units or 26 percent by the end of 2008. The Dearborn-based auto maker said a “new low-cost manufacturing site” is planned for the future. The following assembly plants will be idled: St. Louis; Atlanta; Wixom, Mich.; Batavia, Ohio; Windsor, Ontario; and two others to be named later.
“We're now well past the point in which one or two hit products can correct the overcapacity we have or justify the staffing levels we maintain—even with the significant actions we've taken during the past couple years,” said Anne Stevens, Ford's executive vice president and chief operating office, the Americas.