Ford: Maybe Another 30,000 Jobs Gone

I hate to depress everyone with the news coming out of the automotive industry, but it is important that all of us have the facts. This is an industry in SERIOUS trouble. As I have written before, this is an industry where one company or area's gains will most definitely be at another company and area's expense.

Ford began one of its hardest board meetings in the company's history this week as speculation mounted that the company is poised to slash 30,000 jobs in an attempt to revive its declining revenues and profits.

Ford is expected to follow GM with massive lay-offs in an attempt to shed overcapacity after a dramatic loss in market share to foreign rivals such as Toyota and Honda. It posted a $1.2 billion pre-tax loss in its North American automotive operations in the third quarter alone.

Over the next five years, Ford plans on closing 10 auto plants in North America and layoff between 25,000 and 30,000 of its hourly workforce.

Ford's restructuring plan followed in the wake of General Motors plan and is quite similar to it in the breadth of plant closures and layoffs in North America.

GM said that it would be closing 9 plants in North America and laying off as many as 30,000 auto workers.

Most likely the St. Louis and Louisville KY plants are on the chopping block. Ford's Explorer SUV is built at those plants and lagging sales of the gas-guzzling Ford SUV model is going to affect the board's decision.

Read more here and here.