Ford to Cut 30,000 Jobs

That was the word on Monday. Listen to the company's webcast here. Here's some of the details.

Ford put its restructuring in high gear this week, announcing it will close 14 manufacturing facilities and eliminate as many as 30,000 jobs over the next six years under CEO William Clay Ford Jr.'s plan to end North American losses in 2008.

The company will cut at least $6 billion in annual costs by 2010, Ford said in a conference call yesterday. Executives pledged to create bolder designs, develop vehicles faster and build them more efficiently to ensure that every one is profitable.

The cuts are aimed at restoring profit in Ford's North American auto operations, the company's largest auto unit. The plan, called "Way Forward," is the second effort at revitalizing the unit since 2001, when Ford became CEO of the company founded by his great-grandfather. The region is Ford's largest market and accounts for the bulk of the company's automotive revenue.

"The capacity reduction is big, and it's going to happen," said Burnham Securities analyst David Healy. "The other part is more touchy-feely and hard to evaluate." Ford's move to change its corporate culture is "awful hard to do with an organization under stress."

Assembly plants in Atlanta and St. Louis will close this year, and Wixom, Mich., will shut down next year, its 50th in operation. Atlanta makes the Taurus sedan, which Ford is phasing out. St. Louis is one of two plants that make the Explorer mid-size sport-utility vehicle, whose sales fell 29% last year.

Two more plants will close by 2008, followed by two others in 2012. An Ontario, Canada plant next year will drop to one shift from two, where the Crown Victoria and Grand Marquis cars are made.

Don's Comment: It ain't over. Watch for more.

Sources: Various news services