Ford unveils their â€˜Way Forwardâ€™ Plan
The worldâ€™s third largest auto company Ford has finally unveiled their much-awaited restructuring plan called â€˜Way Forwardâ€™ and it is full of disappointing news for their workers located in the United States. The company has announced plans to close down as many as 14 manufacturing facilities.
They have further plans to cut down their workforce by around 30,000 jobs by 2012. This announcement comes after the company suffered huge losses in 2005 and are losing market share to players like Toyota and Honda in their home market of US. Ford has announced that they would be closing plants located in Atlanta, St. Louis, and Wixom, Michigan. Two other plants are also going to be closed thought the company has not announced their names.
Chief Executive Officer William Clay Ford Jr. said in a statement on his massive restructuring plans to save the future of his company: â€œWe will be making painful sacrifices to protect Ford’s heritage and secure our futureâ€. However their was a small good news for the investors in the company as it also announced a higher-than-expected fourth-quarter profit of $124 million.
They are not alone to take such drastic steps to cut costs and get back to profitability. Their competitors in the US market, General Motors announced similar plans a couple of months back as they too are suffering from the competition from Japanese and South Korean automakers in the US.