Innovative Ideas

White-collar ones going now; others to leave by Aug. 1





Ford Motor Co. has begun dismissing salaried workers as part of an effort to shed 15% of its salaried-related costs by Aug. 1 in the face of a toughening U.S. economy.





The struggling market has resulted in an 11.2% sales decline for the automaker, with a disproportionate amount of the decline, 14%, hitting the profitable truck lineup.
As the Free Press previously reported, the company started the dismissals earlier this month, when it let go of more than 200 contract employees. Another round of contract-employee cuts is expected Thursday.
Ford spokesman Mark Truby confirmed Monday that the dismissals have spread to Ford's regular white-collar workforce. However, the bulk of the dismissals are expected in the weeks ahead, as the Aug. 1 deadline approaches.
In an effort to reach its objectives, the automaker is also forgoing filling many open positions and cutting benefits, such as tuition and scholarship programs for employees.
Ford posted a $100-million profit in the first quarter of this year, but that small gain followed a $2.7-billion loss in 2007 and a record $12.6-billion loss in 2006.

Ford CEO Alan Mulally has said that, given the tough U.S. economy, which has consumers shifting faster than ever from trucks to fuel-efficient, affordable cars, Ford will not likely hit its profit target for 2009. That means Ford will post four straight annual losses as it attempts to restructure its business and provide more of the fuel-efficient cars and crossovers that customers want.
To adjust the market shift, Ford said Friday that it would cut truck production by 90,000 over the next few months -- its second decline in truck production in two months -- and delay the launch of its new F-150 pickup until late fall as it struggles to sell off the current model in an environment where pickup sales are falling.
The truck plants will see shift reductions; Ford is adding shifts at three car plants. Through May, Ford cars sales were down 5%, but some models posted big gains.
Sales of the Ford Focus compact car, which is built in Wayne, are up 36% this year.
Ford's sales so far this year have been representative of the industry as a whole. Total U.S. sales of cars and light trucks are down 8.4%. Sales of light trucks, which include pickups, SUVs and minivans, are down 15.7%.