Ford: Modest Production, More Merit Pay

Edward Niedermeyer
by Edward Niedermeyer

Ford will be taking a conservative approach to 2010, according to Chairman Bill Ford, who tells Automotive News [sub] that unemployment makes him most pessimistic about the year to come.

We’re not planning for a huge pickup next year. If we get one, great, we’ll ride it. We’re planning conservatively. Just as we did this year, we’ve kept our inventories low. If things start to pop for the better, we’ll adjust our production upward and go that way

And why not? Ford’s stock price has soared over the last year, since falling under $2 a year ago. This despite the fact that the Blue Oval is mortgaged to the hilt and will miss profitability for 2009. But because Ford believes that, as President of the Americas Mark Fields puts it, “our plan is working,” the bonuses are coming back for Ford’s white-collar employees.

According to the Detroit News, tuition assistance, 401k matching and merit pay increases are all being reinstated for Ford’s white-collar employees. These perks were suspended over the last 18 months, as Ford turned record losses, and the Detroit-based auto industry plunged into turmoil. “We had committed to employees to reinstate them when business conditions allowed, and they have improved to the point that we can restore these benefits,” say Ford spokesfolks. Too bad the results in question amount to two quarters of operating profit in a year that will still end up in the loss column.

Meanwhile, the reinstated bonuses seem to vindicate the UAW rank-and-file rejection of proposed concessions to Ford. Sure, the UAW gave up its decades-long tradition of platform bargaining by refusing Ford parity with GM and Chrysler, but if things are good enough in Dearborn for mass reinstatement of perks, they’re probably good enough to reject no-strike clauses.

Edward Niedermeyer
Edward Niedermeyer

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  • Z71_Silvy Z71_Silvy on Dec 15, 2009
    "But because Ford believes that, as President of the Americas Mark Fields puts it, “our plan is working,” Ha! Mark, you have to believe it...true or not. Circuit City said their "plan" was working as well.
  • Cpmanx Cpmanx on Dec 16, 2009

    Ford has finally reversed years of market-share loss. Ford has drastically slowed its cash burn (and actually started to accrue cash in the last quarter), contrary to the dire predictions of some people on this site. Ford is keeping inventories low and not basing its projections on dubious forecasts of a major economic rebound. The revamped Taurus and Fusion are getting good notices and solid sales increases, and the crucial F-150 is keeping its segment leadership. None of this proves that Ford will thrive in the long term, but I would call it credible evidence that the company's plan is working.

  • SCE to AUX We don't need no stinking badges.
  • SCE to AUX I've never been teased by a bumper like that one before.
  • 3SpeedAutomatic R&T could have killed the story before it was released.Now, by pulling it after the fact, they look like idiots!! What's new??
  • Master Baiter "That said, the Inflation Reduction Act apparently does run afoul of WTO rules..."Pfft. The Biden administration doesn't care about rules. The Supreme Court said they couldn't forgive student load debt; they did it anyway. Decorum and tradition says you don't prosecute former presidents; they are doing it anyway. They made the CDC suspend evictions though they had no constitutional authority to do so.
  • 1995 SC Good. To misquote Sheryl Crow "If it makes them unhappy, it can't be that bad"
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