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Ford revamp set to cost it $11bn | Ford revamp set to cost it $11bn |
(20 minutes later) | |
US car giant Ford says its current restructuring programme is set to cost $11bn (£5.6bn), with more than half of the costs coming from shedding staff. | US car giant Ford says its current restructuring programme is set to cost $11bn (£5.6bn), with more than half of the costs coming from shedding staff. |
Data in a Securities and Exchange Commission (SEC) filing showed that nearly $6bn of costs would stem from its worker reduction programme. | Data in a Securities and Exchange Commission (SEC) filing showed that nearly $6bn of costs would stem from its worker reduction programme. |
Ford, which reported a record loss of $12.7bn last year, is implementing a massive turnaround plan. | Ford, which reported a record loss of $12.7bn last year, is implementing a massive turnaround plan. |
It has plans to cut 51,000 jobs in order to return to profitability. | It has plans to cut 51,000 jobs in order to return to profitability. |
That includes 14,000 salaried staff as well as 37,000 hourly workers on the factory floor. | |
As part of the plan, Ford is also cutting back its capacity sharply as its market share falls, closing 14 plants. | |
The restructuring programme aims to make the company profitable by 2009. | The restructuring programme aims to make the company profitable by 2009. |
Reports have suggested that the firm - the second-biggest carmaker in the US - may be overtaken by Toyota in its domestic market this year. | Reports have suggested that the firm - the second-biggest carmaker in the US - may be overtaken by Toyota in its domestic market this year. |
In January, it fell to 4th place in the US market. | |
Ford has been heavily dependent on sales of its trucks and sports utility vehicles (SUVs), and higher fuel prices have made them less popular with US consumers. |
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