Monday, January 23, 2006

The Death Spiral Has Started

and another US industry prepares to die.

Jan. 23 (Bloomberg) -- Ford Motor Co., the world's third- biggest automaker, will close 14 manufacturing facilities and eliminate as many as 30,000 jobs by 2012 after three straight quarters of North American losses.

The closings will include assembly plants in Atlanta, St. Louis and Wixom, Michigan, and two unidentified plants by 2008, the company said in a statement today on PR Newswire. The cuts were announced as part of the ``Way Forward'' plan, Chief Executive Officer William Clay Ford Jr.'s second restructuring in four years.

This is a cause for create concern, I am not sure Wal-Mart needs 30,000 new greeters. I hope McDonalds is able to find positions for those Wal-Mart can't. It does leave one to wonder if, within the next decade, any worker in this nation will actually be able to afford a Ford (or any new car).



Joanne said...

Could the plants be going to china?

China is now becoming an industrial state.



Lynne said...

And this amid Ford's fourth quarter profits. Oh, and the CEO made over $22 million in 2004 (latest figures available) and had another $16 in stocks to fall back on. Tough times all around.