Ford is considering closing more factories and eliminating more management jobs to cut North American salary costs by another 10% to 30%, the Wall Street Journal reported on its web site.
Go deeper with GlobalData
Citing “people familiar with the automaker’s plans”, the newspaper said chairman and chief executive officer Bill Ford is under pressure to speed up the company’s restructuring plan, dubbed “The Way Forward”, Reuters reported.
That plan, unveiled in January, called for cutting Ford’s North American hourly workforce by 30,000 and closing 14 plants by 2012.
The WSJ reportedly said Ford executives were now considering plans to expand the Way Forward cuts, speed-up the closings and scale back benefits.
It said one pressing issue for Ford is that sales of sport utility vehicles and pickup trucks are slumping and company officials believe demand for large and mid-size SUVs is decreasing, Reuters noted.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTeams also are looking at savings in advertising and marketing budgets, the newspaper said, adding that Ford’s board is scheduled to meet on 14 September to review the new plans.
According to Reuters, the WSJ said that, under one scenario, the company would cut white-collar costs by 30%, although the final figures could be less of it can find savings elsewhere.
A Ford spokeswoman declined to comment to the WSJ on what she called “speculation.” No one was available to comment to Reuters.
