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Old 01-24-2006, 10:25 AM   #1
Wally
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Ford

25% cut in the workforce there. Not good for a lot of communities me thinks.
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Old 01-24-2006, 12:10 PM   #2
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Can I have some of the drugs your taking?
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Old 01-24-2006, 01:01 PM   #3
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? The Ford CEO announced today that he's axing 4000 executive jobs and 25% of the factory workers, plus about 14 factories. In the US whole communities exist because of the factory system.

Ford is repositioning itself in readiness for the fuel criisis = smaller engines, hybrids, etc. In otherwords it's going Japanese
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Old 01-24-2006, 02:36 PM   #4
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Ford and GM both. Unfortunately, they are now feeling the crunch of all those penny pinching years of the '70s and '80s, when they got into huge union contract issues, and decided to save money by skimping on the products. And then having to spend MORE money fixing the products after the fact. Jaques Nasser at Ford was one of the worst, and one of the reasons Bill Ford replaced him a few years back (and Nasser's penny pinching was the reason the first Focus was so plagued by recalls). But the beancounter mentality at Ford and GM are still firmly in place and will be hard to get rid of.

And closing plants is not the way to solve the problem, as once again, it sacrifices product.
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Old 01-24-2006, 05:10 PM   #5
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Originally Posted by ChrisV
it sacrifices product.

It also sacrifices communities. 4000 people entering the job search community... not good.
Same thing happened in Lansing when GM closed like 3 plants... Not good for the econ... not good at all.
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Old 01-24-2006, 07:09 PM   #6
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Its better that they chose to close the plants now instead of being forced to by financial means. If it will help them get back on their feet, once theyre doing better they can reopen those plants and possibly hire more people.
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Old 01-24-2006, 07:28 PM   #7
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Originally Posted by TheFieroKid
It also sacrifices communities. 4000 people entering the job search community... not good.
Same thing happened in Lansing when GM closed like 3 plants... Not good for the econ... not good at all.

Spending more on union pensions and paying people to keep working instead of paying for quality product is what's hurting the communities now. If a business ins't about a service, then it's about a product. And if peole dnt' buy that product or service, then it doesn't matter HOW well you treat your employees, there won't be a business left to work for. A product based business needs to concentrate on product. Build a good product, you WILL keep people employed. And building a good product means spending a few extra dollars on getting the RIGHT parts.

Shaving product to save 2 million dollars up front, then spending 5 million in new parts and labor to fix it later at no cost to the consumer, is what means you don't have the money to keep plants open, thus losing jobs. And if the union would rather have the manufacturer spend more money on inflated pensions than let the company spend on the product, they are shooting their own future right in the foot.
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Old 01-24-2006, 10:11 PM   #8
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You had to know this was going to come...they closed some around this area too ...
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Old 01-24-2006, 10:16 PM   #9
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You had to know this was going to come...they closed some around this area too ...
Yes but if I heard correctly, Honda is bringing a Plant in this area (supposedly beside the Peterborough Airport) and that will help bring back some jobs.
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Old 01-24-2006, 10:35 PM   #10
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Yes but if I heard correctly, Honda is bringing a Plant in this area (supposedly beside the Peterborough Airport) and that will help bring back some jobs.

It will be pretty nice, but why would a Japanese company move to Canada, to have higher taxes, and (probably) higher wages...
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Old 01-24-2006, 10:39 PM   #11
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It will be pretty nice, but why would a Japanese company move to Canada, to have higher taxes, and (probably) higher wages...
As far as I know they already have another plant in Ontario (I think). It's probably cheaper to build and sell them here then to build them in Japan and ship them here. If I can drive by then I may actually take a look into working there for awhile lol. I think I was told it's just going to be for trucks and suv's but I may be wrong.
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Old 01-24-2006, 11:18 PM   #12
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Presumably the Canadian Govt would be providing Honda incentives, such as tax breaks, accelerated depreciation of plant, fleet purchases, etc.

Ford is doing pretty well in it's overseas operations, where it is more in tune with consumerism. As ChrisV intimated the "let them eat cake" Detroit crowd still haven't learnt from the Japanese invasion of the 70/80's.
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Old 01-24-2006, 11:55 PM   #13
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Chris doesn’t this fall into the category of part of inflation?
I mean if pension costs are up, and you want to make a quality product why not raise the price of the product?

At my job we just raised the price of car washes. Now this was due to 1 the cost of living and employees needing a raise just to make ends meet, 2 costs of supplies. So the price went up, demand is still there so the owner is still making the same margin of profit. As long as you have a quality service or product cost to an extend isn’t going to effect demand.
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Old 01-25-2006, 12:11 AM   #14
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Chris doesnít this fall into the category of part of inflation?

No. Trying to spend less on parts and materials and then having to spend more later to fix them isn't inflation, it's bad management. Unfortunately it's a staple of US corporate bean counter mentality (whoever let the accountants RUN the business instead of merely recording it is the real culprit here)

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I mean if pension costs are up, and you want to make a quality product why not raise the price of the product?

You can't charge mroe for an inferior product, so added costs OF inflation (and added costs drvien up by unions) can't be covered by a commesurate increase in price. An example is that a current domestic mid size car might make $150-180 per unit in profit, while a car like a mid level BMW makes thousands in profits. This is why the automakers loved SUVs, as they could charge more for a basic product and actually make money.

Personally, I'm with you, but when your company is built on providing less expensive products for the masses, your margin is slim. If you raise prices too much, your core customers will elave. If you don't raise prices much, you have to cut costs. Since you can't cut union costs, you muscle suppliers for lower cost parts, which ALWAYS come back to bit you later.





Quote:
At my job we just raised the price of car washes. Now this was due to 1 the cost of living and employees needing a raise just to make ends meet, 2 costs of supplies. So the price went up, demand is still there so the owner is still making the same margin of profit. As long as you have a quality service or product cost to an extend isnít going to effect demand.

There's a difference between a $20 service and a $20k car. Especially when you're getting hammered on cost/qulity ratio by lower priced imports that don't have the labor costs.
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Old 01-25-2006, 12:16 AM   #15
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Originally Posted by Wally
? The Ford CEO announced today that he's axing 4000 executive jobs and 25% of the factory workers, plus about 14 factories. In the US whole communities exist because of the factory system.

Ford is repositioning itself in readiness for the fuel criisis = smaller engines, hybrids, etc. In otherwords it's going Japanese

Ah sorry , If you said that in your first post I probably would of got it.
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