The Ford Motor Company today said that it plans to lay off 25,000-30,000 workers and shut down 14 plants in a bid to turn round its loss-making operations.
In a statement, Ford said 14 manufacturing facilities would be idled, 'resulting in significant cost savings and reduced employment of 25,000-30,000'.
The facilities, including seven vehicle assembly plants, will cease production by 2012, Ford said as part of a hard-hitting plan to restore profitability in North America by 2008.
Ford named five US vehicle assembly factories that will be shut down by 2008 -- St Louis (Missouri) Assembly, Atlanta (Georgia) Assembly, Wixom (Michigan) Assembly, Batavia (Ohio) Transmission and Windsor (Canada) Casting. The other two sites will be named later this year, it said.
Earlier, the troubled car manufacturer reported a higher than expected 19% increase in earnings, boosted by strength in its finance arm and the sale of its rental car unit Hertz, though its car division lost money.
Ford, facing a deepening financial crisis in North America, said fourth-quarter net income was $124m, compared with $104m a year earlier.
Ford has been struggling with loss of US market share to foreign rivals, sluggish sales of its large sport utility vehicles due to high petrol prices and high commodity and health-care costs.
