Source - Ford Will Cut 1500 Contractors

[hatrack]

By John Poretto
AP Auto Writer

DETROIT (AP) - "Ford Motor Co. plans to eliminate about 1,500 North American contract workers and 50 salaried employees by year's end, a company source said Tuesday.

The cutbacks are linked to Ford's announcement in July that it hoped to cut 10 percent of costs associated with its salaried automotive work force by the end of 2003, said the source, who spoke to the Associated Press on condition of anonymity.

EDIT

In another cost-cutting move, Ford's German division said Monday it plans to trim about 1,700 jobs, or 6 percent of its work force, also by year's end - a decision that follows a large second-quarter loss for the automaker's European arm."

EDIT

St. Louis Post-Dispatch

[freethought]

1. Golly gee!

I thought the economy was improving! That's what they keep telling us.

[kcwayne]

2. It is improving

for corporate CEOs that are realizing better bottom lines by outsourcing their work to cheap labor countries.

[priller]

3. Actually, Ford is in real trouble

I've read several articles in the last few months saying that Ford may not be around in another 5 or 6 years. They have large overcapacity, lower sales, and lingering quality problems.

You may find it odd that they're cutting mainly contractor positions, but the big problem for Ford is that, because of generous pension plans, it would actually cost them more to let go of full-time employees than to keep them around. This is true at GM and Chrysler also. And the stock market losing so much of its value over the last 2 years has compounded the pension problem.