Monday, January 23, 2006

Ford to Close 14 Plants

Harsh business realities are slapping Michigan's big tax governor and big price unions today. From 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.
This is horrible news for an already struggling Michigan economy. It was, however, expected.

Moving forward, perhaps the white and blue collars can find time to shelve generations old animosity and work toward the goal of a vibrant and competitive company.

Alas, my guess is that once the company turns another profit, almost immediately, the white collars will be granted larger than deserved bonuses, and the blue collars will be demanding larger than reasonable raises. That is the historic way of the Michigan automotive industry, and that is precisely why it is shrinking.

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