USA: Ford Motor Co. announces that 38,000 workers have accepted buyout offers

Ford Motor Co. said on Wednesday (November 29) about 38,000 employees -- almost half its U.S. factory work force -- have accepted buyout offers, but the company sees a cash drain of about $17 billion from 2007 to 2009. Also, Ford expects a deterioration in overall results next year because of decreased earnings at its finance arm and increased interest costs related to higher level of debt. The No. 2 U.S. automaker said the buyout number includes about 30,000 workers who took the most recent round of offers that concluded this week and about 8,000 employees who accepted Ford's earlier plant-by-plant buyout offers. The buyouts exceed Ford's goal of cutting 30,000 blue-collar jobs in North America by 2008 and exceeds rival General Motors Corp.'s similar efforts earlier this year, which resulted in 34,400 workers accepting buyout offers. Ford has lost nearly $7 billion through September this year, while its North American unit has lost $12.39 billion, before taxes and including special items, since January 2005. The company, hit by a slide in its U.S. market share and rising costs, said in September it would cut its North American hourly workforce by 25,000 to 30,000 employees by the end of 2008 and close 16 plants to return the region to profits by 2009. During the most recent round of offers, Ford offered buyouts, from $35,000 to $140,000 depending on factors including age and years of service, to all of its 75,000 U.S. hourly staff. Employees who accepted the buyouts during that time will begin to leave in January and the process is expected to be completed by September 2007. Ford said the numbers are preliminary as there is an opportunity for workers to rescind acceptance until they leave.

ITN Source | November 30, 2006

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