Slashing Deep - Ford Trims Output 21% in Steepest Cuts Since 1982

[BeatleBoot]

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060819/AUTO01/608190360

Slashing deep
Ford trims output 21% in steepest cuts since 1982
Bryce G. Hoffman / The Detroit News

DEARBORN -- In a staggering admission of its growing problems, Ford Motor Co. announced its deepest production cuts in more than two decades Friday, slashing output of its most profitable pickups and SUVs in a move that will affect 28,000 factory workers over the next four months.

"No one can be pleased by the severity of this cut, which is the most aggressive reduction of a North American production plan in more than 20 years," Chairman and CEO Bill Ford Jr. said in an e-mail to employees. "I am satisfied, however, that we are laying a sturdier foundation upon which to build our business structure going forward."

Ford, reeling from a massive consumer shift away from its bread-and-butter SUVs and pickups, said it will cut fourth-quarter production by 21 percent -- 168,000 vehicles -- pushing output to its lowest level since 1982. It is also cutting already reduced third-quarter production targets by another 20,000 vehicles.

In total, the company plans to produce 3.048 million cars and trucks in 2006 -- the lowest full-year figure since 1991.

The production cuts drove home a harsh reality: Bill Ford's turnaround plan is not working.

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[kenny blankenship]

1. Has Dear Leader had anything to say about the pain

in America's biggest manufacturer sector?
Shown any leadership?

[PassingFair]

10. Dear Leader doesn't CARE about BLUE states.

Had a co-worker tell me that things will be better once
DeVos takes the governorship. :puke:

She ACTUALLY blames the UNIONS for Michigan's demise, and
she's the child of a blue-collar worker.

The self hatred of the middle-class around here is UNBELIEVABLE!

I tried to explain to her that Engler had left the state bankrupt,
that Granholm was trying to preserve social services and schools while
dealing with a shrinking (to put it mildly) tax base and RUINED economy.

"That's YOUR OPINION", she said.

She is impressed with Grand Rapids and thinks that DeVos will
"do to Michigan what he did to Grand Rapids".

I told her that a couple of billionaires getting together to
build a convention center does NOT indicate civic genius.
I asked her how the furniture industry in GR is doing these
days.....

She would have made a "good" German. For sure.

[amandabeech]

18. Wasn't there something about a railroad spur around Ada

that was worthless when Van Andel & De Voss took their Scamway distribution center to Georgia instead?

I'm from an itty bitty town 40 miles north of Muskegon. My mom can't figure out why I don't want to move from the East Coast to Grand Rapids, and she turned Democratic after she got her first social security check.

The last I checked, about 3 years ago, there was no indy cinema and no Unitarian Church in Kent County. Then there was the riot at the Michael Moore speech. These are all bad, bad signs.

You have more fortitude than I to stay there.

[kysrsoze]

11. Unfortunately, Dear Leader has little to do with Ford's pain

Ford's massive losses are the result of nothing more than horrible management. Same goes for GM. Ford's statement on the production cuts came along with a statement of high gas prices impacting their sales. Anyone with half a brain should have seen the 6-year upward trend of gas prices. Honda saw it, as did Toyota and most other companies. Pity, cause their cars are starting to sell better, but the truck sales are in the tank.

[spartan61]

2. But, but didn't Dear Leader just tell us yesterday that

the economy is doing great?????

[acmavm]

4. He sure did, the delusional twit. And he said he's sees it getting better

and better.

There are just so many examples of that guy's obvious mental illness that it is just amazing that he gets away with it.
I can't decide exactly where his mentall illness lies. I go back and forth all the time:

1. The total ability to lie to the American public and not care (sociopathology).

2) The pathetic weakness and dependency of a person who has to have his lines fed to him because he lacks the ability to judge for himself what is the truth, or lacks the integrity to tell the truth. He will do this because he's either totally stupid or he so badly wants to be thought of as a success that he'll go along with anything just to make himself feel better. And to hell with whoever else it hurts.

[okieinpain]

8. it is for asian car companies. I keep hoping oklahoma can farm

out gm's unused planet in oklahoma to someone like hynudai, or mazda.

[okieinpain]

9. god I wish I could find that article with the unnamed ford executive

saying that people just love the freedom that an suv provides, and that ford was not worried about high gas prices sales. wonder what numb nuts has to say now.

[ChairmanAgnostic]

5. his words were "strong, growing, lot's of

opportunity"

sure, if you are into foreclosures and bankruptcy.

[Maccagirl]

3. Thanks to downsizing I'm making half

of what I was making last year and living off of cash advances. Can a wiser person explain how I can afford to buy a new car?

[BeatleBoot]

6. Hang in there Maccagirl

I'm going through something similar.

Pretty scary.

[kineneb]

14. downsized

Hubby was downsized by WorldCom in 2002. Then his health went. We are now living on less than 1/3 of his former income. I do understand; hang in there.

[KittyWampus]

7. But just a couple of months ago... SUV sales were supposedly rocketing

[Joe Bacon]

12. Fors is so out of touch with the market!

Toyota Prius sales are exploding and Ford responds with a hybrid SUV.

Doesn't even make a dent in their minds to try and make a hybrid Smart Car.

[TheFarseer]

15. I keep hearing different things

first SUV sales are plunging, then they are stronger than ever, then they're down again, then there are waiting lists for hybrids and the next thing you hear, sales of those are down and SUV sales are up again. All I can say for sure is I keep seeing SUVs with in-transit signs, but I also see hybrids with in-transit signs. Of course just my city is a small sample size.

[MnFats]

13. unfortunately, the St. Paul Ford truck plant will get drilled in this..

...at least, that's how it looks now. Blue state? tough hop, Vikings fans.

[BrklynLiberal]

16. I cannot help but wonder how many of those losing their jobs voted for

Dimson...

[knitter4democracy]

17. In Michigan, not many.

We're going to get screwed in this. I just hope it doesn't lose us the governor's office. We have a great Dem governor running for re-election this year, and her opponent wants to be the next Bush--he's the son of a rich guy who's amazingly rich, he's outsourced tons of jobs to China, and now he is doing his best to buy the governorship by spending millions and millions to bad-mouth a great governor to do it.

[HeardOnTheHill]

19. I agree-

I agree, Knitter. I just hope people can see this loss for what it is, poor planning and foresight be Ford, not Jennifer Granholm. Dick DeVos seems to be concerned only about the political future of Dick DeVos, whereas Jennifer cares about doing what's best for Michigan, and both have the records to prove it.

[knitter4democracy]

20. Amen to that.

He owns the sites DeVosforpresident.com and DeVosforSenate.com. That tells us all something.