Ford managers have told union officials that the company will have to further reduce its factory work force in the coming months.
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United Auto Workers union officials were told in a Friday meeting that Ford needs to make additional cost cuts “so that we can make the vehicles in an efficient way that customers are buying,” Ford spokeswoman Anne Marie Gattari told the Associated Press (AP).
Ford reportedly reiterated previous statements that it would make buyout and early retirement offers at targeted factories as it tries to further trim its payroll in the face of declining new vehicle sales overall and trucks and SUVs in particular.
Gattari told the news agency Ford was still trying to determine which factories would get the offers, but preferred to use them over more dramatic steps such as closing factories.
“We have a lot of cost-cutting elements that we can work on together,” Gattari said. “We’re looking at doing those kinds of things before we do anything more drastic that no one wants to do.”
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By GlobalDataAP noted that Ford announced in May it would cut production of trucks and SUVs, but increase output of cars and crossovers through additional shifts and overtime and the realignment of some of its manufacturing capacity. The company also said it plans to accelerate the North American introduction of some of its small cars from Europe and South America, although it didn’t reveal which vehicles.
The Associated Press noted that industry analysts have said Ford simply has too many factories making trucks for a market that even the automakers say has permanently shifted to vehicles that get better fuel economy. Many are operating with only one shift, which is inefficient, analysts have said.
Ford has already cut 40,000 factory workers and has about 54,000 still on the books. Details of its plans are expected in July, AP added.
