Friday, September 15, 2006

FORD ANNOUNCES MORE CUTS

Ford Motor Company announced more cost cutting moves that will be implemented through 2008 to save the company approximately $5 billion. The company also updated future financial projections. Some highlights:
  • 33% cut in salaried workers, approximately 14,000 employees (includes 4,000 employees terminated in first quarter of 2006)
  • Buyout offer on contract of all remaining UAW United States hourly workers
  • Closing or selling all Automotive Component Holdings by end of 2008
  • Full-year profitability in North America before 2009
  • Suspension of dividend on common and Class B stock beginning in fourth quarter
Ford Press Release

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