Ford to shut 14 plants in the US, to axe 30,000 jobs

Mumbai: Yesterday, global auto giant Ford Motor Company announced the closure of 14 plants in the US that would slash between 25,000 and 30,000 jobs in North America — almost a quarter of its work force. In 2005, the company had reduced its work force by 10,000 and also sold off The Hertz Corporation for $5.6 billion.

The company's North American vehicle operations lost $1.6 billion before taxes in 2005. Over the years, the company has lost substantial market share to Japanese rivals, particularly Toyota and Nissan.

The closure is part of the company's restructuring efforts aimed at reducing costs in its North American business by $6 billion by 2010. The closure of the plants will also slash its annual car production by 1.2 million units by 2008.

Ford expects to make a profit from its non-US car making business this year, and hopes the cost-cutting programme would return its North American operations to profit by 2008.

The plant closures announced so far include its assembly facilities at St Louis in Missouri, Atlanta in Georgia, Wixom in Michigan, Batavia Transmission in Ohio and Windsor Casting in Canada.

Last year, General Motors (GM) had unveiled plans to save $2.5 billion a year by cutting 30,000 jobs in North America.