The board of directors of US carmaker Ford is, according to several newspaper reports, reviewing a plan to cut thousands of managers and supervisors and reduce their benefits. This comes one week after the company named former Boeing aircraft executive, Alan Mulally as the new boss. A new restructuring programme for Ford has been rumoured for weeks. The company’s business, particularly in the US, has suffered from high fuel prices and intense competition. In the first six months of this year Ford lost 1.14 billion euros. Its original restructuring plan, announced in January, involved the closure of 14 factories and reducing the work force by more than 30,000 by 2012, but that plan was criticised for not addressing the problems urgently enough.
Now, reportedly, as many as 40,000 jobs cuts are being proposed, with older workers being offered more attractive terms to take early retirement and more plant closures sooner. Ford also continues to look at trimming its Premier Automotive Group, including brands like Aston Martin, in a bid to raise some cash and streamline its operations. Aston Martin is almost certain to be sold and Jaguar, which has been steadily losing money, could also go.