Wednesday, November 29, 2006

Oh Ford

Here's an update on Ford: More than half of Ford's workers opt to leave

  • NEW YORK ( -- About 38,000 hourly workers - just over half of Ford Motor's U.S. factory work force - have accepted offers to leave the company, according to the automaker.

    The greater-than-expected take rate of various severance or retirement packages will allow Ford to speed up cost cuts and plant-closing plans as it tries to stem losses in its North American auto operations.

    Ford reportedly has had nearly half of its U.S. hourly workers accept offers to leave the company.

    Shares of Ford gained 1.6 percent in early trading in Frankfurt on Wednesday.

    The company had set a target of 30,000 voluntary job cuts in September when it announced it was offering its 75,000 workers represented by the United Auto Workers union payments of up to $140,000 to leave the company.

What was more interesting was that according to the article:

  • Ford announced plans Monday to borrow $18 billion by pledging assets as collateral for loans, an unprecedented requirement that highlights its worsening financial condition.

In that article about Ford borrowing $18 billion ( link )

  • "They're at the point where they have to pledge assets for loans," said Glenn Reynolds, chief executive officer of New York-based research firm CreditSights Inc., who said it was an indication investors view Ford as a "very high-risk" company.
    "This confirms they see nothing but trouble ahead because they're front-loading their debt now," Reynolds said.


The wonderful motor business!