July 23, 2008

Ford targets more plants for buyouts; shares rally

MarketWatch
Ford, in the midst of a broad restructuring, is looking to slash deeper into its payroll by expanding its buyout program to 14 more plants in Michigan and Ohio by mid-August.

"We're going back to the plants where we've been having various capacity actions and we're taking steps to match output with customer demand," Ford spokeswoman Anne Marie Gattari said.

The Dearborn, Mich.-based automaker is also cutting back on overtime, as well, in a belief that buyouts may look more attractive if the opportunity for extra pay is eliminated, The Wall Street Journal reported.

The plant-by-plant buyout program came about when Ford fell short of its target of cutting about 8,000 workers during an incentive offered earlier this year, with only about 4,200 choosing the option, according to the Journal.

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