DETROIT – Time is running out for 75,000 Ford Motor Co. production workers to make one of the biggest decisions they’ll ever have to make: Whether or not to leave the company by taking buyout or early retirement offers.
Ford, faced with less demand for its products than in previous years, is hoping 25,000 to 30,000 workers will take one of eight packages so it can reduce manufacturing capacity to better match consumer demand.
The deadline was late Monday night. Ford will announce the number of people taking the buyouts later this week.
Ford officials won’t say how many workers have signed up for the offers so far, but they say they are pleased with the numbers. President of the Americas Mark Fields has said the company expects fewer than 40 percent of the workers to leave.
Before the latest round of buyouts was announced, Ford had made offers to workers at a limited number of plants, including those scheduled for closure, and about 5,200 workers decided to go, Ford said.
That means Ford needs about 20,000 more workers to take the new round of buyouts and early retirements to reach the low end of its target range.
Workers who sign up for a package can change their minds up until the day the package takes effect, the company said.
Guy Hamilton, building chairman for United Auto Workers Local 1250 at an engine plant in Brook Park, Ohio, near Cleveland, said it’s too early to tell how many workers will take the packages.
Some could sign up today so they have the option to leave, but withdraw later, he said.
Local 1250 represents about 3,800 workers at the complex near Cleveland.
Ford lost $7 billion in the first nine months of the year, and on Monday the company announced that it plans to get about $18 billion in financing due to help staunch its cash flow losses and to pay for its restructuring. Ford’s share of the domestic market has declined from around 26 percent in the early 1990s to 17.6 percent at the end of October.
The company expects to cut its costs by $5 billion through 2008, with further unspecified reductions in 2009.
Ford has announced plans to close 16 plants as part of its “Way Forward” restructuring plan. Nine of the plants have been identified, but the company has not named the remaining seven.
Under the buyout or early retirement plans, workers can choose between eight packages that offer from $35,000 to $140,000 depending on their years of service, age and how close they are to retirement.
Ford’s buyout plan
Here’s a look at the Ford Motor Co.’s buyout plan.
The target: Reduce work force by 25,000 to 30,000.
Already decided to go: About 5,200 workers, many at plants slated for closure.
The package: Ranges from $35,000 to $140,000 depending on a worker’s seniority, age and proximity to retirement age. Some offer health insurance and partial payment of college tuition.
Reason: The company plans to close 16 plants to better match demand.
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