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As Ford Motor prepares to present a restructuring plan to its board of directors, analysts are warning that shuttering a few plants wont solve its problems. Ford declined to comment on the details of its restructuring plan,but it was widely expected to propose the mothballing of up to five assembly plants ,along with several other parts and support facilities.The plan dubbed "Way Forward",to be formally announced until January,is expected to reduce Fords hourly headcount by as many as 7,500 workers.The cuts would be on top of another 4,000 salariedjobs announced earlier this year.While the plan as speculated would boost Fords capacity utilisation to slightly above 90%,the overall plan is"dissapointing",said Rob Hinchchliffe,an auto analyst with UBS Investment Research New York.He further said "We estimate Ford would save approximately $500m annually as a result of the smaller workforce -insufficient to return Fords North American Business to profitability."
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| Posted : 12/8/2005 |
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