Ford Announces Job, Production Cuts

Posted on January 11, 2002 by LCT Staff - Also by this author - About the author

Ford Motor Co.?s CEO, William Clay Ford Jr, announced today that the company would shed 35,000 jobs worldwide, closing five plants and eliminating four vehicles.

"We strayed from what got us to the top of the mountain, and it cost us greatly," Ford said. He added that the restructuring "painful, but necessary."

The job cuts include 22,000 in North America. Plants to be closed are in Edison, N.J.; Oakville, Ontario; Brook Park, Ohio; Hazelwood, Mo. and the Vulcan Forge plant in Dearborn, Mich.

The vehicles to be dropped are the Escort, Cougar, Villager and Lincoln Continental.

Ford said it was taking a $4.1 billion one-time charge to pay for its plan.

"For most of the last decade the Ford Motor Company was on a roll," Ford said. "The great success we enjoyed may have caused us to underestimate the strength of our competitors."

The plan also includes the suspension of bonuses for company managers and the elimination of 401(k) matching contributions for employees. Ford added that he would accept no salary.

For the company, the need to restructure so severely represents a complete change from its position just a year ago, when it reported a $6.67 billion profit for 2000. Ford lost $692 million in the third quarter of 2001, and is expected to report its third straight losing quarter when it releases its fourth quarter financial statement next week.

"We realize that some of the things that must be done will be painful," said Ford, the great-grandson of founder Henry Ford. "I can't begin to describe how sorry I am about that."

View comments or post a comment on this story. (0 Comments)

More News

NLA Supports, Celebrates Charities At LCT East

Early bird and group discounts end today, so don’t miss your chance to attend this event at the show!

Attention To Detail Sets California Operator Apart

WebXclusive: Millennial operator Aaron Schiff of Ascot Limousine uses his talents to maintain the stellar reputation of his godfather’s company.

Uber's Creepy Drones And Drivers

TNC Travesties Of The Week: The company's marketing techniques prove to be just as aggressive as their independent contractors. 

70 Defining Moments In Luxury Industry History

From the 1970s to the present, check out these incredible events that affect the wider luxury services and products sector. 

Do You Provide Customer Service Or Experience?

Companies may be tempted to stick with the former, but clients can almost immediately notice when the focus isn’t on the latter.

See More News

Facebook Comments ()

Comments (0)

Post a Comment



See More

See More

See More

See More

LCT Store

LCT Magazine - October 2016 $12.95 COVER STORY: * Leverage Tech To Levitate Your Operations * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close