Ford Motor Co., said today it will cut 25,000 to 30,000 jobs and idle up to 14 U.S. and Canadian facilities by 2012. The moves are part of a restructuring to reverse the company's 2005 loss of $1.6 billion in North America. The job cuts represent as much as a fourth of Ford's North American work force of 122,000, and come on top of the 4,000 managerial positions the company previously said it would eliminate. Facilities to be idled by 2008 include assembly plants in Missouri, Georgia and Michigan. Other closures include an Ohio-based transmission plant, a casting plant in Ontario, Canada, and several facilities to be named later.
Ford has been hurt by falling sales of its profitable sport utility vehicles, health-care costs, and restrictive labor contracts. The company's U.S. market share, which has dropped steadily over the past decade, was 17.4% in 2005, down from 18.3% the year before and 24% in 1990.