Jump to content
  • William Maley
    William Maley

    Will Ford Cut 25,000 Jobs? The Answer Is Murky

      Depends on who you ask.

    The holidays are proving to be a tough time for those who work in the automotive industry. Last week, General Motors announced that it would be cutting more than 10,000 jobs and removing products from five plants beginning next year. This could pale into comparison with what could happen with Ford.

    Earlier this week, Morgan Stanley analyst Adam Jonas sent out a note to investors saying that Ford's $11 billion restructuring effort could see 25,000 jobs being cut.

    “We estimate a large portion of Ford’s restructuring actions will be focused on Ford Europe, a business we currently value at negative $7 billion. But we also expect a significant restructuring effort in North America, involving significant numbers of both salaried and hourly UAW and CAW workers,” Jonas wrote.

    Ford's 70,000 salaried employees have been told that job cuts are coming, but an official figure hasn't been revealed.

    “These actions will come largely outside of North America. All of this work is ongoing and publishing a job-reduction figure at this point would be pure speculation,” said Ford spokeswoman Karen Hampton to Bloomberg.

    But Ford CEO Jim Hackett has made things slightly worse. Yesterday, Hackett told reporters "Ford didn’t provide numbers to Morgan Stanley analyst Adam Jonas." Basically a non-denial denial. The company is planning an interim announcement about its workforce later this week.

    Source: Bloomberg, 2




    User Feedback

    Recommended Comments

    You would have to be nuttier than squirrel s#$% to buy automotive stock right now. 

    On a serious note, i wonder how Brexit will affect Ford Europe, as Ford has a LOT of manufacturing in England. Also, Ford sells a lot of Fiestas and the like in England, and if the English economy declines...this could make the above mentioned seven billion dollar figure much worse.

    Share this comment


    Link to comment
    Share on other sites

    Skill re-education here you come, time to learn how to fix computers, robots, service the automation that will build the EVs.

    Share this comment


    Link to comment
    Share on other sites

    Of course they are cutting jobs.  If you don't have Fusion, Focus, Fiesta, Taurus in the line up, it isn't like everyone that worked on those cars is going to work on the Bronco.   Plus they will cut the MKZ and Continental.  And there is probably extra capacity in their SUV factories to absorb any increase in sales on that end for when the sedans are gone.   They will make cuts here and in Europe.  Ford and GM are shrinking companies.

    Share this comment


    Link to comment
    Share on other sites

    Actually, GM has sold 3.0 million units in the US in '15, '16 & '17, up from 2.2M in 2010, and they are on pace for 2.9M in 2018.
    That's not exactly "shrinking".
    http://gmauthority.com/blog/gm/general-motors-sales-numbers/

    • Thanks 2

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×