Ford Motor Company Announces Lay-offs.

Ford Motor Company announced details of a comprehensive plan to restore profitability to its automotive business in North America no later than 2008. Ford will apply lessons learned from consumers and the company’s successes around the world to strengthen its Ford, Lincoln and Mercury brands and deliver more innovative products while simultaneously reducing costs and improving quality and productivity.

“The automotive market in North America is rapidly becoming as crowded and fragmented as other global markets,” said Bill Ford, chairman and CEO. “To meet this challenge, we are acting with speed to strengthen the Ford, Lincoln and Mercury brands, deliver the innovation customers demand and create a business structure for us to compete — and win — in this era of global competition.

“We will be making painful sacrifices to protect Ford’s heritage and secure our future,” he added. “Going forward, we will be able to deliver more innovative products, better returns for our shareholders and stability in the communities where we operate.”

North American capacity is realigned to match demand — with 14 manufacturing facilities to be idled — resulting in significant cost savings and reduced employment of 25,000-30,000.