Ford Motor to Cut 5% of Its White-Collar Jobs (1,700 jobs)

[UpInArms]

http://www.nytimes.com/2005/06/22/automobiles/22ford.html

DETROIT, June 21 - The Ford Motor Company said Tuesday that it would cut 5 percent, or about 1,700, of its white-collar jobs in North America. It also said it would no longer give bonuses to managers or make matching contributions to the 401(k) plans of salaried employees.

Ford also lowered its yearly earnings forecast to $1 to $1.25 a share, compared with a previous forecast of $1.25 to $1.50 a share, saying it expected sluggish vehicle sales to continue. It was the second time in two and a half months that Ford cut its earnings projections for the year.

The job cuts announced Tuesday bring the total number of white-collar jobs Ford has said it will eliminate this year to 2,700. The company did not disclose how it would make the cuts.

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"The sales rate has been lower than we thought," Mr. Leclair said in a telephone interview on Tuesday evening. "We think that is a continuation of a trend of changing consumer preferences away from traditional, truck-based S.U.V.'s toward more fuel-efficient models."

Sales of large and midsize S.U.V.'s, which have been a major profit source for both Ford and General Motors, have fallen sharply. For the first five months of the year, sales of Ford's Explorer and Expedition were down by more than 20 percent compared with last year. Sales of the Excursion, its largest S.U.V., were down more than 30 percent.

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[grannylib]

1. Love the artwork!

[leesa]

2. Good!