Ford has no plans to close plants in 2009 as part of its North American restructuring but will close seven plants between 2010 and 2012, the automaker said in a regulatory filing cited by The Associated Press (AP).
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The news agency noted that Ford announced in January it would cut up to 30,000 jobs and close 14 facilities by 2012 in an effort to get its North American operations back into profit – lost $US1.2bn in the first quarter of this year.
The automaker has so far said it would close seven plants by 2008, reducing its North American manufacturing capacity by 26%.
According to AP, Ford didn’t name the additional plants it will close in the filing with the Securities and Exchange Commission, but did say the seven plants will be closed between 2010 and 2012.
Ford reportedly estimated it would have to pay up to $600m in benefits to employees of those plants as a result of the closures. The company took a $1.75bn charge in the first quarter of this year related to benefits for employees at the first seven plants to close, although Ford said that amount will likely change when it reaches final plant closure agreements with the United Auto Workers and Canadian Auto Workers unions.
Ford also said in the filing that it anticipates its global market share will be flat or down for the year as rising fuel costs and new products threaten sales of its full-size trucks and sport utility vehicles, a traditional area of strength, The Associated Press added.
