From Deseret News archives:

Ford to cut 30,000 jobs

Rollback called 'painful last resort' may hit Utah

Published: Tuesday, Jan. 24, 2006 12:08 a.m. MST
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DEARBORN, Mich. — The Ford Motor Co. said Monday it will close as many as 14 factories and cut up to 30,000 jobs over the next six years.

It was the latest move in a fundamental restructuring of Detroit's traditional auto companies, hit hard by foreign competitors who have taken more than 40 percent of the American market.

The moves by Ford, the second-largest automaker in the United States, come two months after industry leader General Motors said it would close all or part of a dozen factories and eliminate a similar number of jobs.

Including cuts that took place at the Chrysler Corp., the Big Three automakers have eliminated or announced plans to eliminate nearly 140,000 jobs since 2000. That is about one-third of their North American payroll, a rollback to a work-force size not seen since the end of World War II.

The effects of Ford's cuts may be felt as far away as Utah, although at least one local car dealer said Monday that he was feeling positive about Ford's planned changes.

Larry Cutler, general sales manager for LaPoint Ford at 5500 S. State in Murray, said it is not good that people are going to lose their jobs, but he is glad Ford is going to "get into the game and fight it out."

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"We're excited about it, because it's about time Ford retooled itself," Cutler said. "We need to be competitive with the imports."

He said he does not expect sales to dip at the LaPoint dealership as a result of the company's cutbacks, and he looks forward to the buzz that will accompany Ford's plans to roll out new hybrids and body styles.

"Ford is definitely ready to put the gloves on," Cutler said. "It's good for us as dealers, because it adds a shot in the arm."

One of Ford's suppliers, air-bag manufacturer Autoliv ASP Inc. in Ogden, also is not too concerned about the cuts, according to spokeswoman Kathy Whitehead.

"Any time our business partners experience dramatic shifts in their operations, there's certainly a possibility that we could see some impact," Whitehead said. "Although in this case, we expect that it will be minimal."

She said Autoliv, which employs about 4,200 people at several northern Utah locations, has worked hard to develop a mix of customers.

"Certainly Ford is an important customer for us," Whitehead said. "We have been working to build a customer mix in North America that not only encompasses the Big Three automakers, but also the European and Asian transplant markets."

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Sales representative Lupe Munoz, left, talks with Pedro Nava at LaPoint Ford in Murray on Monday. Ford announced layoffs and plant closings in effort to boost profits.

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