By on December 5, 2018

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Earlier this week we mentioned that Ford’s restructuring plan might closely mimic General Motors’ strategy — resulting in widespread job losses. That theory was backed by an analysis from Morgan Stanley, which presumed the Dearborn-based automaker is likely to surpass GM in terms of layoffs, based on how much each intends to free up. Back in July, Ford said it would spend roughly three to five years on its $11 billion restructuring. All told, the financial services company believes the Blue Oval might shed at least 25,000 positions.

In the report’s wake, Ford CEO Jim Hackett is urging everyone not to panic. On Tuesday, he said Ford never provided numbers to Morgan Stanley analyst Adam Jonas, who estimated the significant employee reduction just one day earlier. 

While General Motors recently announced it would cut around 14,000 jobs and close seven factories worldwide by the end of next year, Ford said it was still ironing out the details on what to do with its own workforce. According to Bloomberg, Hackett said Ford will make an interim announcement on the matter sometime before next week.

Thus far, the only definitive answers the automaker has given involves mothballing shifts at specific plants and moving domestic employees to other factories instead of just laying them off. Ford also said it wants to localize as much of the damage to Europe as it can. However, it also noted that salaried workers should be ready to confront unspecified job losses by the middle of 2019.

We’re of the mind that what Ford is really considering is whether or not it’s best to parse the information out (to mitigate public outrage) or just rip the whole thing off like a Band-Aid. Our advice would be to wait until GM talks about layoffs again and follow up with a slightly less dire announcement of its own. That way, it might fly under the radar of angry journalists.

[Image: Ford Motor Co.]

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24 Comments on “25k or No? Ford CEO Discounts Job Loss Claims...”

  • avatar

    Ford can’t sell its sedans for the same reason GM can’t – they’re attempting to sell middling products in a sector that is taking a beating.

    • 0 avatar

      Its sad because back when it debuted, the (Aston) Fusion was one of the most beautiful mainstream cars on the road, with competitive chassis and powertrains, then Ford did jack squat to upgrade it since.

      Still think a loaded Fusion is quite a looker on the outside, but that interior—bleh.

  • avatar

    Very tangentially related: there’s a very lightly used ’17 Fusion Sport at the local Carmax, listed for $21k. Hoo jeez that is a LOT of bang for the buck. I’m very seriously interested in taking a test drive this weekend. The Audi’s got me hooked on the AWD meme.

    • 0 avatar

      MY17s are trading mid 19s on avg.


      BASE MMR

      Avg Odo (mi)

      Avg Cond

      Typical Range
      $17,850 -$21,100

      • 0 avatar

        Good to know 28, this one only has 13k miles on it IIRC so Carmax wouldn’t have had the chance to ruin it with cheap nasty replacement tires.

      • 0 avatar

        Man, that is a strong buy. Any Fusion, even ace-of-base, has handling that feels more 1990s BMW than American family car. Give it a stupid amount of power and all wheel drive, and I imagine it only gets better.

    • 0 avatar
      Kyree S. Williams

      I actually still think the Fusion is competitive. It looks modern, the features are up-to-date, and it feels upscale in higher trims. About the only category in which it does not do well is fuel economy.

      • 0 avatar

        With the twin turbo, fuel economy is obviously out the window. I’ve acclimated to 20mpg on premium in the 190hp Audi, so it doesn’t sting.

        • 0 avatar

          gtem – does your driving mix include mostly city?

        • 0 avatar

          Ah, the European six-cylinder: it may be slow, but at least it’s inefficient. :-)

          I had that same 190 hp Audi V6 myself and quite liked it. It was replaced by a Volvo I6, which traded the Audi’s rolling-snowball power delivery for the power curve of an electric car or a diesel: an enormous initial tire-squealing shove of torque, tapering off right at the point you actually NEED acceleration to get through that last bit of the onramp.

    • 0 avatar

      gtem, I’ve owned one for almost a year now. It’s a great car! A couple things to keep in mind should you go look at it. First, it runs MUCH stronger on premium, and since most dealers insist on putting regular in, it will not perform at its best for a test drive. Also, check the air filter. This may seem odd, but Ford, in their infinite wisdom, decided to leave the assembly stickers in the air intake pathway. They come loose and block the air filter.

      The gas mileage isn’t horrible, especially considering the weight and power of the vehicle. I typically manage around 22 mpg on a similar commute. The suspension seems to handle Michigan roads really well.

      With regards to space, I’ve managed to fit our twin’s double-stroller and 5 trash bags full of pop bottle returnables in the trunk at the same time. In a pinch, I have also managed to fit both forward facing car seats, and their brother’s booster in the back seat together (we usually use the van). I haven’t had to try, but I believe a rear facing seat could fit behind me driving, and I’m 5’10”.

      A good resource for information, including problems, mods, etc, is fusionsportforums.

      • 0 avatar

        Thanks 75 brick that’s very useful info! I’m strictly window shopping at the moment, what we really need to prioritize for our next vehicle purchase is a family van for baby+dog(s) hauling, but I also need to leave the beater game once the kiddo arrives and I’m not exactly thrilled with the prospect of swapping into my wife’s 2012 Camry (4cyl SE). I’ve commuted in a wide range of vehicles over the last 3 years, from my 2012 Civic to old 25 year old Rangers, an ’03 Pilot, old Lexus ES and Maxima, the stick shift B5 A4 is easily the most engaging yet comfortable of the bunch, but also easily the riskiest/costliest to own in terms of repairs. I’d miss having a stick shift, but the thought of a low-key Fusion blowing some doors off away from a light would keep me entertained I think.

        • 0 avatar

          That’s roughly where I was not too long ago. We had the wife’s 200S and my first non-beater, a 2011 Fusion purchased CPO when our first was born in 2013. Then the twins came and we replaced the Fusion with a Grand Caravan, which has been stellar!

          We picked up the 17 Fusion Sport after multiple transmission issues with the 200, in one instance leaving my wife stranded. The Fusion purchase happened two weeks afterward (imagine that).

          I miss my stick shifts, as well. If you have any other questions, feel free to ask.

          • 0 avatar

            Another sort of interesting option that I think my wife would find very appealing would be some sort of plug-in hybrid, namely a C-Max Energi, I’m floored at how cheap these things are with low miles even for loaded up SEL/Titanium trim cars. Not so much because we’re “green” but because we live in an urban area and she loathes filling her car, her commute is short enough where it’d be all electric I think. But that doesn’t address the roomy family truckster angle. I’m strongly leaning towards a CPO Pacifica Touring-L at the moment, but I’m always leery of Chrysler/FCA quality, they had a recall for Pacificas shutting off while driving, and a smattering of infotainment screen/electrical glitches on 2017 cars, some rust issues on the corners of the hoods. Grand Caravans/T&Cs certainly make a strong value proposition and have been in production longer, but I’m not convinced that they’ve 100% ironed out all electrical issues with them either, and I have a hard time ignoring just how much nicer the Pacifica is put together and how much better it is to drive (ergonomics, ride/handling, etc).

          • 0 avatar

            The Pacifica’s are extremely nice. We needed something cheaper at the time, and the Pacifica was relatively new, so we went with the Grand Caravan. The only thing I would still be leery of is the 9-speed. It’s what ended our ownership of the 200.

    • 0 avatar

      Brand new Fusion Sport is $26-27K on autotrader. Unless you know the owner these are like buying a Mustang or Camaro, just have to make sure they were not beaten on.

  • avatar

    I just bought 2018 AWD Fusion Titanium for 21,300 CPO with 14K miles. It is 2.0 Turbo with 245 hp. It is a wonderful car to drive fast. They call it Intelligent AWD or something like that. It makes all the difference. Before that I had 2014 FWD Fusion Titanium with earlier version of 2.0 Turbo. The only thing to complain about is they cut costs on interior compared with 2014 instead of improving and making it more premium like Mazda, Honda and etc did. On the other hand Sync is much better on 2018 Fusion.

  • avatar

    BTW leather quality in 2018 Fusion is better in 2014. So yes gtem try it you will like it.

  • avatar

    With “everyone” abandoning cars, wont some of the job losses be taken up by the increased production and demand for trucks and cuv/suvs? I mean, it doesnt just totally disappear right?

  • avatar

    Back to the original topic of the article. The projected layoffs are likely a case of a self-fulfilling prophecy if:

    A. GM shares continue to outpace Ford shares.
    B. GM shows/forecasts profitability due to lower wage costs and legacy costs
    C. Ford shares continue to be the beaten rented mule of the car business.

    The Ford Family does not take kindly to being teased at the country club and would hate to have to do something drastic, like sell voting stock.

    Another question. Given that most of the transition away from cars is to unibody crossovers, is the shift such a big deal? If people suddenly decide that sedans, coupes and hatchbacks are cool again, how hard would it be for manufacturers to redesign and retool a bunch of unibody crossovers back into cars? I mean, an Escape is a packed-up Focus in many ways. The new RAV4 is based on a platform shared by Camrys, CH-R’s and many others… Just asking.

  • avatar

    There has been massive global overcapacity in the auto industry since the 1990s. Factory closures have been, and will continue to be, a fact of life around the world.

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