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Subject: CAW Chief "Concerned" Ford Will Close Canadian Plants

Author: ScottR@LAP

[ Next Thread | Previous Thread | Next Message | Previous Message ] Date Posted: 23:37:10 01/19/06 Thu CAW Chief "Concerned" Ford Will Close Canadian Plants Published: January 19, 2006 3:35 PM By John D. Stoll Of DOW JONES NEWSWIRES DETROIT -(Dow Jones)- The head of the Canadian Auto Workers union said Thursday he is "very concerned" that Canadian assembly plants could be closed as part of Ford Motor Co.'s (F) restructuring plans that are due to be announced Monday. Ford's `Way Forward' plan, which management has been working on for at least five months, is designed to stem bleeding in its North American auto operations, which lost more than $1.2 billion in the third quarter. Ford hasn't released details of the plan, but the restructuring blueprint is expected to include the closing of four or five assembly plants and additional parts plants, as well as 25,000 job cuts. CAW President Buzz Hargrove said he is scheduled to meet with Ford officials at 7 a.m. EST on Monday in order to discuss how the CAW will be impacted by the 'Way Forward' plan. Ford is scheduled to officially announce details of the plan at 10:30 a.m. EST Monday following the release of its fourth-quarter earnings results. Hargrove has not received any details of the plan, he said. "Am I concerned? Yes, I am significantly concerned," Hargrove said in a phone interview Thursday when asked if he thought Ford might close an assembly plant in St. Thomas, Ontario. The plant employs 2,400 hourly employees and is rumored to be on the block. "I have the feeling they're not just having me for an early morning breakfast," he said. "I've never seen such a tight timetable surrounding an impending announcement," Hargrove said, noting that Ford's tight-lipped approach has heightened concern at the CAW. Hargrove and the CAW hammered out a new labor pact during the summer that only allows Ford to close its Windsor casting plant. Ford had been angling to close a parts plant in Essex, Ontario, but the CAW convinced Ford to reverse course. Ford also committed to invest an additional $200 million in St. Thomas, which builds large sedans for consumer and fleet use. "If they announce a plant closure, in my estimation it would break the contract," Hargrove said. Officials with the United Auto Workers union, which represents more than 80,000 hourly Ford workers in the U.S., could not immediately be reached for comment. In the past, UAW President Ron Gettelfinger has expressed faith in Ford's ability to come up with a restructuring scheme that will be acceptable to the union. In an interview in December, the UAW chief said Ford is a family-run business with a reputation for being "sensitive" when it comes to plant closings. In an interview Tuesday, Gettelfinger said he had not yet talked to Ford about `Way Forward' specifics. He said the UAW hopes Ford chooses not to close any plants, but has repeatedly admitted the UAW is "being realistic" when it comes to Ford's current situation. Gettelfinger said the UAW will lobby to reverse any announced closures. He pointed to a Ford SUV plant in St. Louis that remains open even though it was supposed to close as part of a 2002 restructuring plan. St. Louis is expected to close this year under the `Way Forward' plan. Canada's St. Thomas plant and St. Louis are two of at least a half-dozen car plants that analysts expect Ford could close by 2008. Car assembly plants in Atlanta; St. Louis; St. Paul, Minn.; Wixom, Mich., Cuatitlan, Mexico, and Wayne, Mich., are also considered targets for closure. Ford has a total of 18 North American assembly plants, including two in Mexico. Additionally, Ford operates more than 20 parts and stamping plants and recently took on an additional 23 unprofitable plants and facilities from former subsidiary and top parts supplier Visteon Corp. (VC). Ford took on the Visteon facilities under terms of a broad bailout package and has committed at least $400 million to other plant restructuring actions at Visteon. On Tuesday, Citigroup auto analyst Jon Rogers said Ford needs to cut out 25% of its manufacturing capacity, which is the equivalent of 1 million vehicles in annual production. According to Citigroup, Ford's North American production will continue to fall over the next two years even though Ford is working hard to stem a decade-long slide in market share. -By John D. Stoll, Dow Jones Newswires; (313) 226-1249; john.stoll@dowjones.com (END) Dow Jones Newswires 01-19-06 1535ET [ Next Thread | Previous Thread | Next Message | Previous Message ]