Ford to conduct massive cost cuttings
Americaâ€™s second largest automaker Ford is planning to take an aggressive approach to cost controls under a restructuring plan which should be out in the media sometime later this year. The company is struggling badly in the market, which is suffering from rising fuel prices and the popularity of the Japanese vehicles from companies like Toyota and Honda.
The company had to resort to offering massive discounts on their vehicles to get their sales chart going on. In fact, they are currently selling their cars on employee discount to match a similar scheme being offered by their competitor General Motors. Interestingly, Toyota, Honda, and Nissan have no such offers in the US market and still are comfortably placed.
Fordâ€™s Chief Operating Officer Jim Padilla said in a statement about their plans to cut costs: “We have to be very aggressive in terms of controlling costs. We will be aggressive. We will address costs. We will address our footprint as a business. We will address capacity.” He was addressing the media and public at the ongoing Frankfurt auto show.
The company might even resort to cutting costs to get back to profitability. Rumors claim that even some of the loss making plants might be closed down to cut costs in the manufacturing of these vehicles.