MUSTANG PLANT IN MICHIGAN!!! NOT GOOD NEWS

 

Ford to cut shift at Mustang plant in Michigan

By Shawn Langlois
Feb 16, 2010 14:00:00 (ET)


SAN FRANCISCO (MarketWatch) -- Ford Motor Co. on Tuesday said it will halve the number of shifts at a plant in Michigan this summer to better match its production capacity to demand in a move that will impact about 900 jobs.

"We can operate on one shift at that plant, raise the line speed by about 35% and more efficiently build the production volume that is required," Marcey Evans, a Ford spokesperson, said.
"This will allow us to move workers to other facilities where we will have a need later this year -- such as Michigan Assembly or Chicago," she added.

The AutoAlliance International plant in Flat Rock, which employs more than 2,000 workers, is a joint venture between Ford (F, Trade ) and Mazda and rolls out the Ford Mustang and Mazda 6. Both models saw sales drop in 2009.

Ford said it is offering "the vast majority" of the displaced workers jobs at other facilities. The remaining minority will have the option of either taking a buyout package or going onto "indefinite layoff."
Ford shares gained 1.6% to $11.30 in midday trading on Tuesday and have now jumped 13% so far this year. The company continues to benefit from a strong crop of new cars at a time when its U.S. rivals work to recover from bankruptcy and Toyota Motor Corp. (TM, Trade ) grapples with a brutal series of recalls.

 

Why is this bad news? They clearly don't need that many workers to keep production numbers. More money in Ford's pocket to spend on improvements.

 

It's not bad news for the company and it's investors and stock holders (like myself). But it's potentially terrible news for those people who aren't going to be part of the "vast majority" who will lose their jobs. I feel for them.

 

The stock went up, so it can't be considered bad. Besides, a lot of workers will go to other facilities.

 

Company stock always goes up on layoff announcements - more profit with less expense. The Market could care less about families.

 

You're right, Ford should keep on workers who they DON'T NEED out of what? guilt? Is that not how they ended up in trouble in the first place?

 

Nobody is saying they should keep people they don't need. What we're saying (or at least I am) is that it's not ALL good news. When people lose their jobs, it's not a good thing. Yes, it's good for the company by becoming more efficient. Yes it's good for those of us who own stock because the market responded favorably to that kind of news. But it's not good that people are going to lose their jobs, no matter how many of them do.

 

It can if you were one of the ones laid off.

Of course Ford has to do what it has to do to survive/thrive, and if that includes laying off people, than that is what should be done.

But, let's show a little compassion for the people that lost/will loose their job.

 

I've been laid off for the past 10 months. I know what it feels like and I have compassion. At least Ford is moving the vast majority to other positions. I didn't have that option.

 

The layoffs are planned for this summer. Hopefully there will be a surge of Mustang orders this spring and they won't have to lay off all 900. With the Pontiac Solstice and Saturn Sky off the market, plus the Mustang's new V6, I wouldn't be surprised to see an upswing in sales of V6 convertibles, especially if Ford can make some decent ads.

 

this was discussed in another thread as well...

 

Hopefully the number of people who won't be part of the "vast majority" isn't too great.

I'm on the fence on this one. I want Ford to float on its own, but I hate to see even more people laid off. However, I also understand its just not logical to keep people on board when there simply is no legitimate use for them.

 

Dagnabit, I do feel for the people trying to make a living and getting laid off. I do have my '11 ordered, let's hope that with Ford's new line-up of cars and engines that it will turn around mighty quick for those workers.

 

They might get recalled if Ford's sales are up enough. I'm doing my part!

 

Is it just me but having worked in manufacturing for 30 years, when I hear a line speed increase of 35%, I worry....alittle.

 

27 years in manufacturing here and I thought the same thing. Sounds like there could be quality issues. Let's just hope some areas were actually moving too slow and other one person jobs will now become two.

 

I would say that Ford is showing some pretty deep compassion by offering these folks spots in other plants. This happens very infrequently these days and I commend them for that. As far as the layoff in general and the line speed increase, its just a sign of the times. I sure hope all the bolts get tightened correctly and we don't sacrifice quality in this transition. This new smaller group of folks will be building the 2011. The last thing we need is the '11 stepping out with inferior quality and issues due to 35% line speed increase. The people in charge are smart and I have faith. Lets just hope it all works out.

 

Yes, that would be my concern also......

 

I hope they slowly increase speed to 35%...unless it's just the robots parts and not humans...im not liking this at all...please alan don't make ford another toyota or gm quailty product...