Ford announces deep production cuts in response to growing losses
{{date|August 19, 2006}}
[[Image:Ford Motor Company logo.png|thumb|200px|right|Ford Motor Company logo]]

[[w:Ford|Ford]] has announced sweeping cuts of 21% (168,000 units) in its [[w:USA|US]] and [[w:Canada|Canadian]] production, resulting in the partial closure of ten of its plants during the fourth quarter. The measure comes on top of existing turnaround plans announced in January, in which 25,000 to 30,000 positions should be cut and 14 plants closed by 2012.

Ford is the world’s third-largest automaker and the U.S.’s second-largest. However it has in recent years been struggling with poor profitability and shrinking market shares. In 2005 it lost $1.6 billion and recently the company reported a second quarter loss of $254 million and a 34% year-year decline in sales for the month of July.

George Pipas, director of sales analysis at Ford, points to rising gas prices having negative impact on the sale of the companies [[w:SUV|SUV]] lines as well as its sales leader, the [[w:Ford F-Series|F-series pickup truck]] as being the direct cause of the latest initiative.

So far the following plants are thought to be affected: 

*[[w:St. Thomas Assembly|St. Thomas Assembly]] of [[w:St. Thomas, Ontario|St. Thomas]], [[w:Ontario|Ontario]], Canada
*[[w:Chicago, Illinois|Chicago]], [[w:Illinois|Illinois]]
*[[w:Wixom Assembly Plant|Wixom Assembly Plant]] of  [[w:Wixom|Wixom, Michigan]], [[w:Michigan|Michigan]]
*Louisville Assembly of [[w:Louisville, Kentucky|Louisville]], [[w:Kentucky|Kentucky]]
*[[w:Michigan Truck Plant|Michigan Truck Plant]] of [[w:Wayne, Michigan|Wayne]], Michigan
*[[w:Saint Paul, Minnesota|St. Paul]], [[w:Minnesota|Minnesota]]
*[[w:Kansas City Assembly|Kansas City Assembly]] of [[w:Kansas City, Missouri|Kansas City]], [[w:Missouri| Missouri]]
*Norfolk Assembly of [[w:Norfolk, Virginia|Norfolk]], [[w:Virginia|Virginia]]
*[[w:River Rouge Plant|River Rouge Plant]] of [[w:Dearborn, Michigan|Dearborn]], Michigan

Ford's stock fell 17 cents (2.1%) to $8 on the [[w: New York Stock Exchange|New York Stock Exchange]].

==Related==
*{{wikinews|title=Ford Motor Company cutting 30,000 jobs by 2012|date=January 23, 2006}}

==Sources==
*{{source-pr|url=http://media.ford.com/newsroom/release_display.cfm?release=24057
|title=Ford reduces North American vehicle production as part of accelerated ‘way forward’ turnaround
|pub=Ford Motor Company
|date=August 18, 2006}}
*{{source|url=http://seattletimes.nwsource.com/html/businesstechnology/2003209733_ford19.html
|author=Sarah Karush
|title=Ford plans big production cut in response to falling demand
|pub=The Seattle Times
|date=August 19, 2006}}

*{{source|url=http://www.theglobeandmail.com/servlet/story/LAC.20060819.RFORD19/TPStory/Business
|author=Greg Keenan
|title=Embattled Ford slashes output
|pub=The Globe and Mail
|date=August 19, 2006}}

[[Category:Canada]]
[[Category: United States]]
[[Category: North America]]
[[Category: Economy and business]]
[[Category:Norfolk, Virginia]]
[[Category:Virginia]]
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{{Archive-unreviewed}}
Ford Motor Company logo

Ford has announced sweeping cuts of 21% (168,000 units) in its US and Canadian production, resulting in the partial closure of ten of its plants during the fourth quarter. The measure comes on top of existing turnaround plans announced in January, in which 25,000 to 30,000 positions should be cut and 14 plants closed by 2012.

Ford is the world’s third-largest automaker and the U.S.’s second-largest. However it has in recent years been struggling with poor profitability and shrinking market shares. In 2005 it lost $1.6 billion and recently the company reported a second quarter loss of $254 million and a 34% year-year decline in sales for the month of July.

George Pipas, director of sales analysis at Ford, points to rising gas prices having negative impact on the sale of the companies SUV lines as well as its sales leader, the F-series pickup truck as being the direct cause of the latest initiative.

So far the following plants are thought to be affected: 

*St. Thomas Assembly of St. Thomas, Ontario, Canada
*Chicago, Illinois
*Wixom Assembly Plant of  Wixom, Michigan, Michigan
*Louisville Assembly of Louisville, Kentucky
*Michigan Truck Plant of Wayne, Michigan
*St. Paul, Minnesota
*Kansas City Assembly of Kansas City,  Missouri
*Norfolk Assembly of Norfolk, Virginia
*River Rouge Plant of Dearborn, Michigan

Ford's stock fell 17 cents (2.1%) to $8 on the New York Stock Exchange.

*
Canada  United States  North America  Economy and business Norfolk, Virginia Virginia