Ford Motor Company recently announced its plans to reduce production in the North American region, resulting in new rounds of job cuts for autoworkers.
The exact number of layoffs will be released later this summer. The company has already proposed buyouts in Chicago and Louisville and may extend them to other facilities.
In an email to employees, CEO Allan Mullaly said, “[W]e will need to make additional reductions in U.S. automotive personnel and other salaried-related costs.” The company has already cut 47,000 jobs and closed 11 plants since 2005. (Free Press, May 22)
Sales of pick-ups and SUVs— 65 percent of Ford’s market this year—have plummeted due to high fuel costs. Production will be cut by 15, 20 and 8 percent in the second, third and fourth quarters respectively, despite a recent 4-year labor agreement with the United Auto Workers not to close any more facilities.
