Detroit (Michigan), Oct 02: Ford Motor Company said today it is seeking to cut about 8,000 jobs at its plants in North America and Europe this year as it steps up a huge cost cutting exercise. It has ordered the loss of another 3,000 jobs in North America this year, 3,000 in Belgium and 1,700 in Germany, company officials said, as ford announced a 5.2 per cent rise in US sales of its Ford, Jaguar, Land Rover and Volvo models in September against the same month last year.
Monthly sales rose to 294,991 units from 280,319 last year. But with the American big three facing ever mounting pressure from Japanese carmakers, ford is planning more job cuts and their US rivals are expected to follow suit.
The automaker has earmarked four US plants for closure over the next four years with the loss of up to 4,500 jobs as part of its new labour contract with the United Auto Workers Union.
The US job losses this year will be through cuts and job attrition. Ford will shed 1,700 agency and contract white- collar workers, and will not fill another 1,300 salaried jobs that fall vacant, Ford spokesman Oscar Suris said.
Employees were informed of the cuts in an email yesterday from Jim Padilla, president of North American operations.
The reductions amount to 10 per cent of the Dearborn-based automaker's US salary-related costs. The company is also cutting back on overtime and limiting new hires to critical positions.
In Europe, Ford is to cut 3,000 jobs at its Genk plant in Belgium, just over a third of the workforce there.
Bureau Report