The Axe .....Part Deux 8+ Plants????

[SalinePlastic]

Ford to close more than 8 plants:

 

All Reuters NewsFRANKFURT (Reuters) - Ford Motor Co plans to close more than eight North American assembly and parts plants in a drive to revive faltering operations on the continent, industry paper Automotive News reported on Monday.

 

Citing a "key company insider," the paper said the number-two U.S. carmaker was likely to close at least five vehicle assembly plants: in Atlanta; St. Louis; St. Paul, Minnesota; Wixom, Michigan; and Cuautitlan, Mexico.

 

Recent investing newsConexant to Present at the Lehman Brothers 2005 Global Technology Conference Financial Institutions, Inc. Announces Dividend St. Jude Medical to Offer $600M of Debt Volcom Announces Pricing of Secondary Offering PrivateBancorp, Inc. Announces Issuance of $40 Million in Trust Preferred Securities

Several powertrain and stamping plants will also close, it cited the unidentified source as saying based on his knowledge of a turnaround plan Ford is preparing and the group's overcapacity problems.

A Ford of Europe spokesman said he could not confirm the report and reiterated that the company would unveil its restructuring plan in January.

 

Ford has said it would unveil in January a restructuring plan for North America, dubbed "Way Forward," which Chief Executive Bill Ford Jr. has said would include plant closures.

 

Like General Motors Corp , Ford has seen its margins squeezed by soaring health-care and raw material costs and a decline in U.S. market share. So far this year, Ford's North American unit has lost over $1.4 billion before taxes.

 

GM has announced plans to cut 30,000 jobs through 2008 and close 12 facilities to reduce excess capacity.

 

In a separate interview with Automotive News, Bill Ford

 

declined to give details of what the restructuring plan will include other than to reiterate that the group would reduce capacity and focus on new products that could fuel demand.

 

He confirmed that he had approached "most of the top executives in this industry" over the past six or seven years about coming to work for Ford, but added he was intent on remaining in the top post for now.

 

"Look, I'm firmly committed to this job, this company, and I'm going to fight like mad to get this company back to where it deserves to be," he said.

 

Bill Ford said the company would feel the pinch on margins as customers increasingly shift into cars from more lucrative products such as sport utility vehicles.

 

"Obviously, the segmentation downshift, from a margin standpoint, is not a good one. But we've planned these vehicles from the start to be a much healthier business proposition than their predecessors were. But once you start coming down the price point curve, you clearly have lower margins," he said.

 

Over time, margins should start to converge as customers opt for added content on small and mid-sized cars, he added.

Edited December 5, 2005 by SalinePlastic

[dark270]

Ford to close more than 8 plants:

 

All Reuters NewsFRANKFURT (Reuters) - Ford Motor Co plans to close more than eight North American assembly and parts plants in a drive to revive faltering operations on the continent, industry paper Automotive News reported on Monday.

 

Citing a "key company insider," the paper said the number-two U.S. carmaker was likely to close at least five vehicle assembly plants: in Atlanta; St. Louis; St. Paul, Minnesota; Wixom, Michigan; and Cuautitlan, Mexico.

 

Recent investing newsConexant to Present at the Lehman Brothers 2005 Global Technology Conference Financial Institutions, Inc. Announces Dividend St. Jude Medical to Offer $600M of Debt Volcom Announces Pricing of Secondary Offering PrivateBancorp, Inc. Announces Issuance of $40 Million in Trust Preferred Securities

Several powertrain and stamping plants will also close, it cited the unidentified source as saying based on his knowledge of a turnaround plan Ford is preparing and the group's overcapacity problems.

A Ford of Europe spokesman said he could not confirm the report and reiterated that the company would unveil its restructuring plan in January.

 

Ford has said it would unveil in January a restructuring plan for North America, dubbed "Way Forward," which Chief Executive Bill Ford Jr. has said would include plant closures.

 

Like General Motors Corp , Ford has seen its margins squeezed by soaring health-care and raw material costs and a decline in U.S. market share. So far this year, Ford's North American unit has lost over $1.4 billion before taxes.

 

GM has announced plans to cut 30,000 jobs through 2008 and close 12 facilities to reduce excess capacity.

 

In a separate interview with Automotive News, Bill Ford

 

declined to give details of what the restructuring plan will include other than to reiterate that the group would reduce capacity and focus on new products that could fuel demand.

 

He confirmed that he had approached "most of the top executives in this industry" over the past six or seven years about coming to work for Ford, but added he was intent on remaining in the top post for now.

 

"Look, I'm firmly committed to this job, this company, and I'm going to fight like mad to get this company back to where it deserves to be," he said.

 

Bill Ford said the company would feel the pinch on margins as customers increasingly shift into cars from more lucrative products such as sport utility vehicles.

 

"Obviously, the segmentation downshift, from a margin standpoint, is not a good one. But we've planned these vehicles from the start to be a much healthier business proposition than their predecessors were. But once you start coming down the price point curve, you clearly have lower margins," he said.

 

Over time, margins should start to converge as customers opt for added content on small and mid-sized cars, he added.

 

 

wonder what the parts plant are? monroe ????

 

if anyone knows..would appreciate more info!

[SalinePlastic]

Monroe....

They are in the LLC right?

This does not apply to any LLC......supposedly they will all be sold or closed?

This whole topic makes my blood boil when I see my co workers driving Toyota/honda/nissan/gm and Chrysler products....well hopefullly they can continue to make the payments with their unemployment checks. "I work for Ford I drive a Ford"

[lazybutskilled]

THIS NEW ARTICLE PROVES MY POINT!!!! LIKE I HAVE BEEN TELLING ALL THESE MORONS AT WIX THAT ARE RUNNING AROUND QUOTING PEOPLE HERE SAYING "ITS OFFICIAL WE'RE STAYING". UNTIL UNCLE BILL SAYS WE ARE GETTING CARS, DONT BELIEVE THE "AUTO EXPERT WANABES" HERE. THIS SITE CAN HURT MORE THAN IT CAN HELP UNLESS YOU TAKE IT WITH A GRAIN OF SALT.RUMORS ARE JUST THAT TILL THE MAN SAYS OTHER WISE. <_< <_<

[dark270]

Monroe....

They are in the LLC right?

This does not apply to any LLC......supposedly they will all be sold or closed?

This whole topic makes my blood boil when I see my co workers driving Toyota/honda/nissan/gm and Chrysler products....well hopefullly they can continue to make the payments with their unemployment checks. "I work for Ford I drive a Ford"

 

 

yes i know.....i know a guy(40+ years) bought a brand new honda!!! although i dont have a problem with GM/DCX because they are UAW.....

 

i know we are LLC but it did say parts ...so i assummed LLC....maybe i was wrong

[wildosvt]

Monroe....

They are in the LLC right?

This does not apply to any LLC......supposedly they will all be sold or closed?

This whole topic makes my blood boil when I see my co workers driving Toyota/honda/nissan/gm and Chrysler products....well hopefullly they can continue to make the payments with their unemployment checks. "I work for Ford I drive a Ford"

 

 

I wish u the best!

 

I have to ask, Was leaving Saline worth it?

[SalinePlastic]

I wish u the best!

 

I have to ask, Was leaving Saline worth it?

 

yes it was....it is nice walking in under the blue oval everyday. The Stamping plant comment in the article has me wondering? Wayne ISA is attached to Wayne Assembly, I don't know if that makes us any safer than a stand alone plant like Maumee/Buffalo/Woodhaven etc....thanks for your concern Wildo....hopefully things work out for all my buds back @ Saline.

 

[sailorjohn]

THIS NEW ARTICLE PROVES MY POINT!!!! LIKE I HAVE BEEN TELLING ALL THESE MORONS AT WIX THAT ARE RUNNING AROUND QUOTING PEOPLE HERE SAYING "ITS OFFICIAL WE'RE STAYING". UNTIL UNCLE BILL SAYS WE ARE GETTING CARS, DONT BELIEVE THE "AUTO EXPERT WANABES" HERE. THIS SITE CAN HURT MORE THAN IT CAN HELP UNLESS YOU TAKE IT WITH A GRAIN OF SALT.RUMORS ARE JUST THAT TILL THE MAN SAYS OTHER WISE. <_< <_<

 

I was surprised when I read the WSJ article and Wixom wasn't included. Seems like no-brainer, would be very easy to place laid off folks from Wixom, more facilities anyways, than folks at places like Atlanta, St. Paul and St. Louis

[Footballfan]

Perhaps they should call this plan "Moving Backwards." How are we to have any more confidence that this plan is going to be any more fruitful than the one they announced in 2002.

 

Before this management team took over, Ford had about a 25 percent share of the market and 20 1/2 assembly plants (Auto Alliance is the half-plant). If Ford goes through with these five plant closings, they will have about 14 1/2 assembly plants or over 40 percent of their capacity was cut, or in other words, you will have roughly the same amount of capacity that the North American unit of Daimler Chrysler has. Does this mean they are expecting a market share of about 15 percent? It is evident that if these rumors are true, Ford would have abandoned the compact pickup market, the minivan market (assuming the D2 Fairlane will not be built as speculated), and be left with lackluster entries in the compact, and luxury car (Lincoln) segments? This is called "Way Forward?"

 

Face it, at the end of the day, innovation will not draw people into the showroom. There would not be that many more takers for a large sedan that got 30 MPG if it is wrapped up in a body like the 500. Face it- the Ford Edge and Lincoln Aviator are marginal products at best. A front-wheel-drive Lincoln Continental and Town Car are not going to cut it. The entries from GM in these categories are going to blow these products away. At the end of the day, all the company will be judged on is the product and styling.

 

This company and its management are in dire straits. Why else would nobody want to come here? It is a shame this is happening and nobody seems to have a clue as to what to do about it.

[sailorjohn]

Perhaps they should call this plan "Moving Backwards." How are we to have any more confidence that this plan is going to be any more fruitful than the one they announced in 2002.

 

Before this management team took over, Ford had about a 25 percent share of the market and 20 1/2 assembly plants (Auto Alliance is the half-plant). If Ford goes through with these five plant closings, they will have about 14 1/2 assembly plants or over 40 percent of their capacity was cut, or in other words, you will have roughly the same amount of capacity that the North American unit of Daimler Chrysler has. Does this mean they are expecting a market share of about 15 percent? It is evident that if these rumors are true, Ford would have abandoned the compact pickup market, the minivan market (assuming the D2 Fairlane will not be built as speculated), and be left with lackluster entries in the compact, and luxury car (Lincoln) segments? This is called "Way Forward?"

 

Face it, at the end of the day, innovation will not draw people into the showroom. There would not be that many more takers for a large sedan that got 30 MPG if it is wrapped up in a body like the 500. Face it- the Ford Edge and Lincoln Aviator are marginal products at best. A front-wheel-drive Lincoln Continental and Town Car are not going to cut it. The entries from GM in these categories are going to blow these products away. At the end of the day, all the company will be judged on is the product and styling.

 

This company and its management are in dire straits. Why else would nobody want to come here? It is a shame this is happening and nobody seems to have a clue as to what to do about it.

 

Last time I looked the general was bleeding market share also. What it means is that the company knows they've been bleeding market share, they've bled out market share actually, and won't be getting it back, not anytime in the next decade. It's called cutting your losses. Existing plants can be retooled, don't assume that closing a particular plant means the company will be giving up on a particluar market segment, but you can't keep plants open if you can't sell vehicles. Simple economics, too many assembly plants + too little market share = plant closings.

[Tags]

One must also factor in what % capcity any given factory is working at. Does it make sense to keep open an entire plant that is building only 2 cars that sell at total of 100,000 units maybe. I'm talking about Wixom here. Forgive me if my numbers are wrong, it's just a guess. Consider St. Louis is also a duplicate plant that is running only one shift and has been for quite some time. Some of the things I've heard don't make sense like: St. Paul, What are the future plans for the Ranger; this is not a market segment I want Ford to get out of? And think about this with a continuing shrinking market share and more competition then ever in the full-size truck market does Ford NEED 3 plants running F150's. Something has to give in the truck plants.

 

So Ford is cutting 40% of its capcity; What part of that 40% is currently being utilized? I'm not happy about this, I'm not happy that Ford isn't making the products that people want to buy. If and When Ford ever gets it business model right the plants that are left will be working FULL-TIME, with the flexiblity to change models at the drop of a hat.

 

As for the "Powertrain" plants isn't one of the cleveland plants already being planned for closure? Also isn't one of the buyback plants Rawsonville considered a powertrain plant?

[DearbornDerek]

Some of the things I've heard don't make sense like: St. Paul, What are the future plans for the Ranger; this is not a market segment I want Ford to get out of? And think about this with a continuing shrinking market share and more competition then ever in the full-size truck market does Ford NEED 3 plants running F150's. Something has to give in the truck plants.

 

Well here is one possibility I see (THIS IS JUST MY OPINION NOTHING MORE). We have been told that the company only needs 5 shifts to build the F-150. Dearborn is flex so if it has a frame we can build it. We end up with the ranger and Michigan truck (which is on life suppoprt right now) gets the other half of ranger production. Again, just my opinion but it does seem very feasible.

[NorfolkBuilt]

How are you guys running at Dearborn ?We got our 2-tones back from you guys.

[DearbornDerek]

How are you guys running at Dearborn ?We got our 2-tones back from you guys.

 

As far as I know we have been running good. We have been hitting 60/hour every day but one for the last 3 weeks now.I know we are still running two-tones. But we are getting ready to put a new tri-coat white on the Lincoln, so that might be sending some two-tones to you. We have been getting a lot of Harley's added to the mix lately also. we are doing a steady 9.2 every day and getting close to 500 a shift. All in all I think we are starting to get the bugs out of the machines and have become a lot more productive. On a side note....congrats to all of us for the F-150 being named #1 in J.D.Powers initial quality!

[WIX-toast]

Some of the things I've heard don't make sense like: St. Paul, What are the future plans for the Ranger; this is not a market segment I want Ford to get out of?

 

Can you say "Ranger from Thialand". when "W" gets the tarrifs lifted on small trucks, St Paul is "Paul-toast" unfortunately, the plant is older than dirt, the columns in the building couldn't hold the new overhead equipment for new mfg equipment. they are working in the stone age there. I believe that Ford will continue to sell small trucks, probable not built in the US because of competition from asian factories. Toyota is again poised to sieze a market segment from the US, they already build these trucks in Thialand. just waiting for the idiots in congress to lift the tarriff's so the top 1% can make more money.

[tbill]

As far as I know we have been running good. We have been hitting 60/hour every day but one for the last 3 weeks now.I know we are still running two-tones. But we are getting ready to put a new tri-coat white on the Lincoln, so that might be sending some two-tones to you. We have been getting a lot of Harley's added to the mix lately also. we are doing a steady 9.2 every day and getting close to 500 a shift. All in all I think we are starting to get the bugs out of the machines and have become a lot more productive. On a side note....congrats to all of us for the F-150 being named #1 in J.D.Powers initial quality!

 

:lol: Be careful......we used to get that distinction at OTP(Ontario Truck Plant) quite often. We even got it AFTER it was announced that we were closing!!! Nothing really to add.....just remember being #1 can come back to bite ya in the butt :P

[DearbornDerek]

:lol: Be careful......we used to get that distinction at OTP(Ontario Truck Plant) quite often. We even got it AFTER it was announced that we were closing!!! Nothing really to add.....just remember being #1 can come back to bite ya in the butt :P

 

Well I was not saying our plant was number 1, I was just saying congrats to ALL of the truck plants for the TRUCK being named #1. :P

[Tags]

Well I was not saying our plant was number 1, I was just saying congrats to ALL of the truck plants for the TRUCK being named #1. :P

 

 

Norfolk is the number one car or truck plant. Or so we've been told, and everyone in reply says that same thing about we were number one and they still closed our plant or They were adding on to our plant when they closed it.

 

I'd like to see the Ranger go to Dearborn. I think Ford customers would very suspect of any foreign built truck.

 

I have not seen an increase in two-tone production; though we are 'balanceing out' this week and running 90% V6's.

 

Have a nice day. :rolleyes:

[Kzinti]

 

This could apply to Ford too, we'll see what the plan details are in January...

[MAV]

Can you say "Ranger from Thialand". when "W" gets the tarrifs lifted on small trucks, St Paul is "Paul-toast" unfortunately, the plant is older than dirt, the columns in the building couldn't hold the new overhead equipment for new mfg equipment. they are working in the stone age there. I believe that Ford will continue to sell small trucks, probable not built in the US because of competition from asian factories. Toyota is again poised to sieze a market segment from the US, they already build these trucks in Thialand. just waiting for the idiots in congress to lift the tarriff's so the top 1% can make more money.

 

 

I have to agree with you about Thailand being a threat. Here at TCAP, we are fully aware of our shaky status and the fact that lifting the tariff on trucks from Thailand will hurt us badly. But please don't make assumptions about our plant facilities. Yes, we are older than most, but believe me, we can install and run any equipment Ford wants us to install. We are proud of our workforce and the quality we produce, and will continue to make the best Rangers and Mazdas we can. There is enough bad press and untruths floating around the media, we surely don't need it on here from our brothers and sisters from other plants.

[Bored of Pisteon]

When that article says "several powertrain and stamping" plants. I am slightly concerned about Sterling's long term fate. Even though I believe it won't happen after all we been through the past several years, then again I wouldn't be suprised either... Because the proof is that the UAW local's quarterly newsletter I just received said "We are now returning to the Powertrain division of Ford."

 

 

LOOK... NOBODY'S PLANT IS SAFE RIGHT NOW.

[CSMJ]

:P

One must also factor in what % capcity any given factory is working at. Does it make sense to keep open an entire plant that is building only 2 cars that sell at total of 100,000 units maybe. I'm talking about Wixom here. Forgive me if my numbers are wrong, it's just a guess. Consider St. Louis is also a duplicate plant that is running only one shift and has been for quite some time. Some of the things I've heard don't make sense like: St. Paul, What are the future plans for the Ranger; this is not a market segment I want Ford to get out of? And think about this with a continuing shrinking market share and more competition then ever in the full-size truck market does Ford NEED 3 plants running F150's. Something has to give in the truck plants.

 

So Ford is cutting 40% of its capcity; What part of that 40% is currently being utilized? I'm not happy about this, I'm not happy that Ford isn't making the products that people want to buy. If and When Ford ever gets it business model right the plants that are left will be working FULL-TIME, with the flexiblity to change models at the drop of a hat.

 

As for the "Powertrain" plants isn't one of the cleveland plants already being planned for closure? Also isn't one of the buyback plants Rawsonville considered a powertrain plant?

I WORK AT THE CASTING PLANT IN CLEVELAND AND NO NONE OF THE 3 PLANTS ARE CLOSING.

FORD SPENT $400 MILLION ON PLANT 1,OVER$150 ON PLANT 2 AND $100 ON THE FOUNDRY IN THE LAST 3 YEARS. WE BUILD ALL THE V-6 FOR THE 500 HUNDRED,FREESTYLE,FUSION,MILAN,AND THE LINCOLN'S,PLUS MAZDA'S AND THE ESCAPE/TRIBUTE.AND WE CAST ALL OF THE TRUCK V 8,V 10 BLOCKS.

FOR HAS A KNEW SUV COMING CALLED THE EQUATOR AND IT WILL TAKE THE DURATEC 30 THAT WE BUILD 100% OF. WERE ALSO GETTING THE 3.5 V-6 ENGINE FOR THE VAN,F150,EXPLORER,AND THE 500 IN 2007. THE POWERTRAIN PLANTS IN TROUBLE ARE WINDSOR AND ROMEO.THERE'S ALSO TALK WE WILL GET THE KNEW ALLUMINUM V-8 ENGINE COMING IN 08 FOR THE LINCOLN'S.

FORD HAS 2 DIESEL BLOCKS COMING AND OUR FOUNDRY IS THE ONLY ONE FORD HAS.

AND IF WE GET THESE FORD WILL NO DOUGHT PUT THEM ON A CONVEYOR AND SEND THEM TO PLANT 1 OR 2 ENGINE PLANT NEXT DOOR.

LATER, PEACE OUT