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Ford to close five North American plants, cut 7,500 jobs

by wsws (reposted)
Ford Motor Company plans to close at least five plants and eliminate 7,500 jobs, or 6 percent of its total North American work force, according to a report in the Wall Street Journal Friday. The job-slashing by Ford follows last month’s announcement by General Motors that it would eliminate 30,000 jobs and shutter 12 facilities in the US and Canada before the end of 2008.
The job-cutting in North America is part of a massive retrenchment of Ford’s global auto operations. The number two US automaker also plans to cut 1,470 jobs at its Volvo division, primarily at plants in Sweden and Belgium, and could sell the historic Browns Lane Jaguar plant near Coventry in central England.

Ford’s cuts are part of a worldwide attack on jobs in the auto industry, which is plagued by over-capacity. Volkswagen is said to be planning the elimination of 14,000 jobs, including 10,000 in Germany. On Thursday, 10,000 workers marched in Barcelona, Spain to oppose plans by Volkswagen subsidiary SEAT to cut nearly 1,500 jobs.

Ford’s plan, called the “Way Forward,” is not due to be released officially until January and may still be revised. The leak to the press was likely aimed at gauging the response of Wall Street investors, who have been punishing the company’s stock—which is down to around $8 a share—and demanding a major restructuring of Ford.

The company’s worldwide operations have lost $1.69 billion in the first nine months of this year. Like GM, Ford has been hard hit by rising fuel and other commodity prices, declining sales of large SUVs, and loss of market share in the US to Japanese and European competitors.

The company plans to close plants in St. Louis, Atlanta and St. Paul, Minnesota in the US, as well as an engine parts plant in Windsor, Ontario and a truck-assembly plant in Cuautitlan, Mexico, according to unnamed sources familiar with the automaker’s plans.

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http://www.wsws.org/articles/2005/dec2005/ford-d03.shtml
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