Ford Stamping Plant Not Closing

[Billsman]

http://www.wgrz.com/news/news_article.aspx?storyid=34751

Western New York has dodged another bullet from the auto industry.

Hamburg's Ford Stamping plant will NOT close, or even lose jobs.

2 On Your Side's Lynne Dixon explains it is finally good news, under a dark year for the business.

Click on the video link for Lynne's story.



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[Billsman]

Ford to close 14 plants, including Wixom


January 23, 2006

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By JASON ROBERSON and SARAH WEBSTER
FREE PRESS BUSINESS WRITERS


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William Clay Ford Jr., addresses the media during Monday's news conference in Dearborn. (AMY LEANG/Detroit Free Press)

Ford Motor Co. on Monday morning announced its anxiously awaited Way Forward plan — an ambitious wide-ranging effort that will close 14 plants, including the Wixom plant in Michigan, lay off up to 30,000 workers, streamline the company’s product offerings and try to prepare the 103-year-old automaker for a promising, stable future.

Ford has more than 82,000 hourly workers in 18 assembly, eight stamping, and 17 powertrain and casting plants in North America. But with declining demand for its vehicles, that is far more than the Dearborn-based automaker needs.

Ford will idle the following facilities by 2008:
- Wixom Assembly, 1,567 employees
- St. Louis Assembly, 1,445
- Atlanta Assembly, 2,028
- Batavia Transmission, 1745
- Windsor Casting (announced following Canadian Auto Workers contract negotiations in 2005) 684
- Two additional assembly plants, which will be determined later this
year.

Ford will build a new low-cost manufacturing plant that will be located in North America.

The Dearborn-based automaker also promised new product investments to get vehicles into the marketplace quicker, "more clarity for the Ford, Lincoln and Mercury brands" and changes to design, safety and technology innovation to differentiate Ford Motor products in the marketplace.

"We will be making painful sacrifices to protect Ford’s heritage and secure our future," said Bill Ford, Ford Motor chairman and CEO. "Going forward, we will be able to deliver more innovative products, better returns for our shareholders and stability in the communities where we operate."

Ford North American President Mark Fields said the company will focus on slowing losses in the short term, stablizing market share; and returning North American operations to profitability by 2008.

Michigan Gov. Jennifer Granaholm said Ford's decision to close the Wixom plant shows the need to diversify the state's economy.

“This is disappointing news for Michigan and for the Michigan families who are most affected by this announcement, but I believe that the tough business decisions announced this morning will help the company regain its financial footing so it can continue to be an industry leader for decades to come.

“My first thoughts today are with the workers and the families who are most affected by today’s announcement. This is a difficult situation, and my administration will do everything in our power to help the Ford workers who are affected by the company's restructuring."

This is the second restructuring to come under Bill Ford, the great-grandson of Henry Ford, who founded the company, made Detroit an automotive landmark and left a proud legacy that the Ford family is determined to protect.

That prior revitalization plan, announced in January 2002, promised to close five plants, eliminate 35,000 jobs worldwide and bring 20 new or freshened products annually in the United States.

Bill Ford made that announcement just 10 weeks after taking over the CEO post from the ousted Jacques Nasser. At the time, he also said he regretted having to make the job cuts, which amounted to about 10% of Ford’s workforce.

Since then, Ford has been unable to keep its sales from falling in the competitive and critical U.S. market.

Sales declined by the double-digits in the U.S. for the Ford, Lincoln, Mercury and Jaguar brands and have increased only for the Volvo and Land Rover marquees. In the end, Ford lost 462,920 car and truck sales between 2002 and 2005. That decline, of 12.8%, represents enough sales to keep more than two assembly plants in operations.