Ford slashes 30,000 US jobs
CARMAKING giant Ford will axe up to 30,000 jobs in the US by 2012 as it cuts back manufacturing at 14 plants.
The massive restructuring plan, announced today, will slash the motor company's capacity by a quarter - 1.2m – and is aimed at reducing costs by at least $6bn by 2010.
Ford has been hit by falling sales and earlier today reported net income of $2bn in 2005 – a 42% drop on the previous year's $3.5bn.
The manufacturer has won business in Europe and Asia but its gains have been more than offset by a $1.6bn loss in North America.
Ford Europe made a $136m full-year pre-tax profit in 2005, compared to $114m the previous year.
Cuts will affect motor plants and workers across the USA but it is not known if they will impact on Ford's UK and European operation.
Ford was reported this weekend to have turned down a bid for Jaguar from Renault. The French giant wanted to take on the loss-making British luxury brand.
Jaguar lost £429.3m in 2004 - the last accounts available – but Ford has ploughed an extra £1.2bn in to demonstrate its commitment.
Number two US automaker Ford was hurt by falling sales of its profitable sport utility vehicles, growing health care and materials costs and labour contracts that have limited its ability to close plants and cut jobs.
Ford also has seen its U.S. market share slide as a result of increasing competition from foreign rivals. The company suffered its tenth straight year of market share losses in the United States in 2005, and for the first time in 19 years, Ford lost its crown as America's best-selling brand to General Motors' Chevrolet.
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