Ford's job cuts could hit 30,000

Uncertainty gripped the country's auto industry yesterday after reports suggested Ford Motor Co. may cut more jobs and close more plants than expected, possibly throwing more Canadians out of work. The Detroit News reported that Ford is considering the closure of as many as 10 assembly and component facilities in North America -- analysts had been expecting the closure of four plants -- and will cut between 25,000 and 30,000 workers after reporting two straight quarters of losses. Rod Lache, an analyst at Deutsche Bank, said in a research note yesterday that he "wouldn't be surprised" if Ford's restructuring plan, to be announced next month, reached the 30,000-mark in terms of job losses. He also indicated that Ford's Essex engine plant in Windsor, Ont., could find itself on the chopping block. Canadian union leaders downplayed the reports, saying they have no information to suggest North America's second-biggest automaker is planning further cutbacks in Canada. The union has already negotiated 1,100 job cuts at Ford, including the closure of a Windsor casting plant in 2007, during a collective bargaining session earlier this year. The deal also discussed the possibility that Ford's Essex engine facility in Windsor would end production of an older V-6 engine, along with efforts to replace it with a new-generation model by 2008. "I contacted Ford today after this newspaper report came out and was told there is no change," said Buzz Hargrove, president of the Canadian Auto Workers. "The only things we're losing is the V-6 engine and the closure of the casting plant in Windsor." However, Hargrove added that the situation with Ford is fluid and that anything is possible in the beleaguered North American auto industry. Ford's board of directors is expected to meet this week to discuss the restructuring plan, which a Ford spokesman said is still being developed. Last month, Ford said it planned to eliminate 4,000 salaried jobs, or 10% of its North American white-collar workforce.
(National Post, Toronto Star 051208)

The news from the North American automotive industry gets worse by the day.