Business News: Ford Motor Co. (NYSE: F) to Create 2,000 New Union Jobs

Source: American Banking and Market News

Ford Motor Co. (NYSE: F) said that it plans to create 2,000 union jobs which had previously been outsourced to supplies. The new total is about 25% higher than Ford had previously agreed to pay to bring back in-house during its negotiations with the United Autoworkers Union three years ago, reported the Wall Street Journal on Friday.

The return of jobs is largely a good piece of news for the UAW, however, some of the jobs will pay a new wage of $14.00 per hour instead of the $26.00 per hour that most UAW workers make. The company did not provide a breakdown or how many new hires would be and how many of the positions would be filled by workers on an indefinite layoff.

The company said that it will bring back 1,975 union jobs back to its plants by 2012, exceeding its original commitment by about 25%, said Ford Americas president Mark Fields in an automotive gathering in Traverse City, MI on Wednesday. The company has already moved 1,340 jobs from formerly outsourced parts suppliers back to its 24 US facilities and plans to move 635 more jobs by 2012, said Field.

UA President Bob King said that he plans to recoup many concessions that the UAW made to Ford during the next round of discussions with Ford which may begin as early as next year. “Our message is pretty balanced: We are doing better but we are not satisfied and we still have a lot of debt,” Mr. Fields said. “We also have continued to have conversations around our need to remain competitive.”

Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries also engage in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. The Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa and Volvo. The Financial services include the operations of Ford Motor Credit Company and Other Financial Services.

Shares of Ford Motor Co. (NYSE: F) traded up 0.46% hitting $13.04 during mid-day trading on Friday.

REPORT: Ford Transit Connect to be built Stateside in 2012

A welcome splash of news for the UAW and the U.S. economy: Ford will commence production of the Transit Connect at a U.S. assembly plant by mid-year 2012. Currently built in Turkey on a version of the Euro Focus platform, the next generation Transit will also migrate to the FWD compact platform that will underpin the next Focus both hear and abroad. Ford plants in Wayne, Michigan and Louisville, Kentucky will be retooled to build cars on that architecture, meaning the that Transit could join them.

With an electric version joining the 2.0-liter four-cylinder in 2010, an outside analyst predicted 60,000 units would be reasonable by 2013. Ford isn’t quoting any production numbers yet, preferring to see how the current version — that just went on sale this month — fares.

[Source: Automotive News – Sub. Req.]

Breaking News: Ford’s Business Plan to Congress

FORD MOTOR COMPANY SUBMITS BUSINESS PLAN TO CONGRESS; PROFIT TARGET, ELECTRIC CAR STRATEGY AMONG NEW DETAILS

* Based on current business planning assumptions, Ford expects both its overall and its North American Automotive business pre-tax results to be breakeven or profitable in 2011

* Ford provided initial details of an accelerated vehicle electrification plan for a family of hybrids, plug-in hybrids and battery electric vehicles. The plan includes a Ford full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011

* Ford’s plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years

* Ford said it will sell its corporate aircraft as part of its overall cash improvement plan

DEARBORN, Mich., Dec. 2. 2008 – Ford Motor Company this morning submitted to Congress its comprehensive business plan, which details the company’s plan to return to profitability and outlines a request for potential access to a temporary bridge loan in case the current economic crisis worsens or there is a bankruptcy of a major competitor. In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles – including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles. Ford is asking for access to up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available.