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Ford cuts jobs as sales shift into low gear
FORD Motor Co, the second-largest United States auto maker, is cutting a Chicago vehicle-assembly plant to one shift from two as sales keep sliding for cars made there.
The move takes effect on November 3, spokeswoman Angie Kozleski told Bloomberg News on Friday.
While Ford hasn't determined how many jobs will be eliminated, the first to be affected will be about 600 temporary workers from a production workforce of 2,100, she said.
The factory builds the new Lincoln MKS sedan as well as the Ford Taurus and Mercury Sable sedans and Taurus X crossover wagon. Taurus sales dropped 16 percent this year through August, the Taurus X was down 32 percent and the Sable 13 percent.
The Taurus 'is wrapped in some milquetoast styling,' said Ed Kim, director of industry analysis at consulting firm AutoPacific Inc in California. 'The car was always at a disadvantage with its competitors.'
The Chicago reductions are part of a 30-percent cutback in second-half North American output announced last week, when Ford reported a 27-percent plunge in August sales. The new production targets mostly involve large pickups and sport-utility vehicles being rejected by consumers amid record gasoline prices.
The current Taurus was called the Five Hundred when introduced in 2004. It has never met sales targets. The Five Hundred moniker was dropped last year as Michigan-based Ford resurrected the name of the best-selling car in the US from 1992 through 1996.
Ford is bringing out a redesigned Taurus next year as the auto maker works to end US$23.9 billion in losses since 2005. Chief Executive Officer Alan Mulally said in January that the company's plans for new models were 'very exciting, especially the Taurus,' without elaborating.
More doubts surround the future of the Sable and Taurus X, which were also introduced in 2004.
Sable is the Mercury-brand version of the Taurus, a midsize car. Mercury is going to become part of the auto maker's strategy for selling more small cars, Ford said in July. Meanwhile, the Taurus X may be replaced as part of the auto maker's plan for a redesigned, car-based Explorer SUV.
'I'm 99 percent sure that's what's happening,' AutoPacific's Kim said.
Ford hasn't said where the new Explorer will be built.
The move takes effect on November 3, spokeswoman Angie Kozleski told Bloomberg News on Friday.
While Ford hasn't determined how many jobs will be eliminated, the first to be affected will be about 600 temporary workers from a production workforce of 2,100, she said.
The factory builds the new Lincoln MKS sedan as well as the Ford Taurus and Mercury Sable sedans and Taurus X crossover wagon. Taurus sales dropped 16 percent this year through August, the Taurus X was down 32 percent and the Sable 13 percent.
The Taurus 'is wrapped in some milquetoast styling,' said Ed Kim, director of industry analysis at consulting firm AutoPacific Inc in California. 'The car was always at a disadvantage with its competitors.'
The Chicago reductions are part of a 30-percent cutback in second-half North American output announced last week, when Ford reported a 27-percent plunge in August sales. The new production targets mostly involve large pickups and sport-utility vehicles being rejected by consumers amid record gasoline prices.
The current Taurus was called the Five Hundred when introduced in 2004. It has never met sales targets. The Five Hundred moniker was dropped last year as Michigan-based Ford resurrected the name of the best-selling car in the US from 1992 through 1996.
Ford is bringing out a redesigned Taurus next year as the auto maker works to end US$23.9 billion in losses since 2005. Chief Executive Officer Alan Mulally said in January that the company's plans for new models were 'very exciting, especially the Taurus,' without elaborating.
More doubts surround the future of the Sable and Taurus X, which were also introduced in 2004.
Sable is the Mercury-brand version of the Taurus, a midsize car. Mercury is going to become part of the auto maker's strategy for selling more small cars, Ford said in July. Meanwhile, the Taurus X may be replaced as part of the auto maker's plan for a redesigned, car-based Explorer SUV.
'I'm 99 percent sure that's what's happening,' AutoPacific's Kim said.
Ford hasn't said where the new Explorer will be built.
