so what happens after the Ford buyout?

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JHZR2

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So, Ive been watching stuff regarding the Ford buyout of its entire workforce... they say that in hand with the buyout will likely be more plant closings.

My question is this... unless ford (or substitute the name of any other domestic maker there) has been making SUBSTANTIALLY fewer cars these years than they dd in the past, which I cant find to be true... then where does the capacity come from to produce all of the vehicles that the companies sell?

Are the companies really in good enough shape to close down a plant, buyout the employees, then startup again in canada or in a Union-free enterprise? That all takes money.

I can see that 'shared platform' cars being the norm miht allow two different vehicles to be made in the same plant... but is that how its all to be done? Or am I missing something?

It seems tome that unless theyre planning on selling a lot less cars after their attrition, that they must have a good plan up their sleeves... what do you htink theyll do? move to canada/mexico? open union-free plants?

Thanks,

JMH
 
One word.


CHINA


In case everybody didn't know, Ford and GM have invested heavily in plants in China. They are and have been making cars and the parts to build them there for a few years.
 
Ford, where Chinese quality is job 1.
banghead.gif
 
First, I wouldn't count on a large percentage of the employees accepting the buyout.

FORD will be cutting production irrespective of reduction of employees. They are trying to reduce the fixed cost per unit. Anyone vaguely familiar (I'm almost vaguely familiar) knows the cost the auto makers pay for "down" time is enormous. It's kind of like paying for a house you're not living in, the taxes and mortgage and some utilities still have to be paid.

It's still less than even money that this plan, alone, will return a lot of Ford's profitability.
 
Truck sales dropped 45% in July for Ford. Production is down and likely will remain down until Ford creates or modify's products that are more appealing and more palatable given consumer perception of fuel prices.

Remember truck sales were the profit center of domestics.
 
"Topic: so what happens after the Ford buyout?"

Kiss the Norfolk Ford F-150 pickup plant bye-bye. Workers there are expecting the plant to close long before the originally scheduled date of 2008. The plant will close for nine weeks between now and the end of the year and will primarily operate on just one shift instead of two when it is open. A number of other plants are probably in the same boat, but we haven't heard about them here. Based on recent material in The Virginian-Pilot, the Norfolk daily newspaper, my educated guess is that the plant will close soon after 1 January 2007. Forget 2008. And watch for similar news from other plants.

The Ranger pickup plant in Minnesota was also scheduled to close in 2008, but I'll bet the workers there have the same exact worries. Talk is that a trade treaty to be negotiated with Thailand will exempt light trucks produced there from the 25% import tariff that would otherwise apply, which so far has been the reason the Japanese manufacturers either build pickups here or sell rebadged US pickups as Mazda does selling the Ranger as the B-series. Mazda already builds its foreign-spec B-series in Thailand. It would be a simple matter to build Mazda and Ford versions and import them to replace the existing Minnesota-built vehicles if the deal with Thailand happens.
 
"Ford and GM will lose a lot of goodwill by trying to sell cars assembled elsewhere.

I don't think I'm wrong on this one."

I'm not arguing with you, but, it seems they have lost good will anyway. I guess, while in Rome, do as the Romans.
 
quote:

Originally posted by GROUCHO MARX:
Ford and GM will lose a lot of goodwill by trying to sell cars assembled elsewhere.

I don't think I'm wrong on this one.


Gut feel says you're right, but how are Mexican Fusions, Milans and Zephers selling?
 
MSNBC is claiming it's due to Ford and Daimler Chrysler's HEAVY SUV/Large Truck manufacturing, they went with the fad and when gas prices spiked people quit buying them so Ford was caught with their pants down - surely it was just a matter of time.

why shouldn't Ford move manufacturing to China? it's the American way - if you can make it cheaper and charge more why not? most of IT is outsourced to india, our cars will go to china, our food will come from somewhere else because we will build corporate skys****ers and condominiums all over the midwest and run out of room, our water will come from canada, but our oil will always come from saudi arabia!
 
"our food will come from somewhere else"

I think it's extremely important that our food comes from here. Support your local farmer/rancher.
 
This last buy-out by Ford that was announced on Thursday was for a lump sum in exchange for a surrender of RETIREE MEDICAL BENEFITS. For some workers it was estimated at over $100,000, although I wouldn't make that trade. Its just another way for them to avoid keeping promises to workers made years ago as the profits made on all those SUVs have been foolishly handed down to "executives" for work NOT performed and the well is running dry. From what is in the news most foreign manufacters except Germany? do not provide this benefit. Ford cries and moans that the playing field is not level but it just another way to get Americans used to lesser benefits if you are employed by SOMEONE else...sad.
 
Ford made it official. The Norfolk F-150 plant will close later in 2007 instead of 2008. Still say it will close soon after the first of the year.

If the "traditional US" automakers move everything including design, engineering, and manufacturing to China and other overseas areas, in my book you might as well either (1) buy directly from one of the Chinese manufacturers such as Chery when they set up shop here or (2) buy from one of the foreign companies that assemble vehicles here and continue to employ Americans. Toyota will soon be "more American" and will probably employ more people here than will GM and Ford if things continue as they have been.
 
It is not the end.....it is merely the beginning of the end....of the American empire.

We are continuously sliding into the mire of many 2nd-world countries with a huge majority of have-nots struggling for existence while the haves continuously amass wealth and power.

The average chap will strive to be a functionary for the haves, bureaucrats and various lackeys who insulate the haves from the masses.

With so much wealth available and lackeys desparate for one of the few jobs allowing a middle-class or so existence, the countries law enforcement agencies will grow in size and power... to maintain the status quo.

Do you see the expansion of law enforcement the last couple decades?

Peek at Census Bureau data showing the upward flow of wealth and the decreasing wealth of those towards the bottom of the socio-economic pile.

Yes yes yes, there are still individual exceptions. I beg thee to look outside your own little universe and look at the BIG picture.

I fear for the Union's future.
 
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