Ford to Cut Jobs & but not Bonus' recvd for a Good Job to Execs

<p>Well, hmmm. Nike fires its new president after 13 months, citing poor performance. His severance package is

That’s for a guy who, accoridng to his bosses, didn’t make the grade. I’ve read kvetching about school superintendent, college administrators, and union workers on these threads. Well, welcome to the top of the private sector.</p>

<p>Xiggi, you make a good point. Having health care tied to employment (why?) creates a competitive disadvantage for US companies vis a vis companies in single payer nations, as well as between domestic companies with full benefits and those without. Which raises the question: is linking health care costs to employment a good thing? The momentum for de-linking retirement income from employment is pretty much unstoppable now, although too late to save a lot of companies which went under due to underfunded pension plans. Is it time to reevaluate where health care dollars should come from?</p>

<p>The poor performance may be related to an inability to get along with Phil Knight–known as one of the most hot-headed difficult guys around.</p>

<p>Re: Productivity in Mexican factories</p>

<p>It should be pointed out that Mexican factories were built much more recently than many US auto plants. The Wixom (Michigan) assembly plant was built back in the mid 50’s. It would be unfair to compare productivity rates between dissimilar manufacturing plants even if they produced comparable vehicles. The Wixom plant produces a mix of unibody and body on frame vehicles (the Lincoln Town Car and the Lincoln LS). Newer plants are designed to be more flexible in the types of vehicles that can be produced on their assembly lines… a feature never thought about by Ford or anybody else in the 1950’s. Material handling engineering has come a long way since the early 20th Century.</p>

<p>Re: Healthcare costs</p>

<p>Most industrial nations have some form of national health insurance. The US does not. </p>

<p>Re: Michigan’s future prospects</p>

<p>The local paper interviewed auto workers and their adult children about a month ago. Almost all of the college educated children plan to leave the state in search of job opportunities. Their auto worker parents all advised their kids to look for work outside the auto industry. Even when the college graduates received strong job offers from the Big Three or did internships, they all declined.</p>

<p>Re: Modern communications</p>

<p>Ford actually had a design studio in California during the reign of Jacques Nassar in the ‘90s. The hope was to get more in touch with West Coast auto trends. For whatever the reasons, the whole operation was closed up a few years ago and brought back to Michigan.</p>

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<p>The tire fiasco…Firestone tires and Ford Explorer=exit Jacques he took the fall.</p>

<p>Took the fall on a mighty soft sword, I would say. If I got fired with these kinds of packages, gee, I would feel just awful</p>

<p>Love all the excuses for incompetence</p>

<p>And gee, I heard today that dealers have way too many SUVs and not enough hybrids and smaller cars from Ford. So the workers build what the overpaid bosses tell them to, and they are the ones being let go because the bosses have no vision and are making off like the bandits they are.</p>

<p>Nice</p>

<p>I read a piece yesterday about Nassar. He boosted profits but cut investment in future oriented projects leaving Ford with an empty pipeline. </p>

<p>CGM–they are also letting go numerous salaried types and they don’t get the benefit of getting two years pay for doing crosswords.</p>

<p>Today’s WSJ reports that Ford Motor currently has 1,100 workers in its JOBS Bank who cost the company about $130,000.00 each - approximately $140 million at Ford alone - and that’s before the new round of layoffs which will significantly increase the number of workers in the Bank.</p>

<p>Add in GM, Delphi, Chrysler and Visteon and you start to understand the problem that the industry faces. Lots of money that could have been used to design and build a better hybrid!</p>

<p>Chrysler to cut mgt staff. It’s not only the hourly workers getting the boot.</p>

<p><a href=“http://news.yahoo.com/s/nm/20060124/bs_nm/autos_daimlerchrysler_jobs_dc[/url]”>http://news.yahoo.com/s/nm/20060124/bs_nm/autos_daimlerchrysler_jobs_dc&lt;/a&gt;&lt;/p&gt;

<p>A look at the Job Bank from the Detroit News:</p>

<p><a href=“Detroit Local News - Michigan News - Breaking News - detroitnews.com”>Detroit Local News - Michigan News - Breaking News - detroitnews.com;

<p>Great article. For you political types…Bush didn’t kill the industry, nor did Clinton. Management did and so did the UAW. Very sad…and Michigan is paying the price.</p>

<p>From today’s Detroit Free Press: </p>

<p><a href=“http://www.freep.com/apps/pbcs.dll/article?AID=/20060125/BUSINESS01/601250351/1014[/url]”>http://www.freep.com/apps/pbcs.dll/article?AID=/20060125/BUSINESS01/601250351/1014&lt;/a&gt;&lt;/p&gt;

<p>Lear Corp. and DCX settles out of court over material costs.</p>

<p>Auto suppliers get hammered over increases in raw material costs and have to pass those costs onto the auto companies. </p>

<p>Suppliers can only go so far to cheapen a part before being overtaken by raw material costs. Component failures just waiting to happen…</p>