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Ford Motor Co. (NYSE: F) will refit an existing truck plant in Michigan to manufacture smaller cars. Cost: $75 million. This comes on the heels of one of the worst years ever for large American automakers, which still can't cope with rapidly changing consumer desires for fuel-efficient transportation instead of gas guzzling SUVs and large trucks.

As Georges indicated recently, Ford will need massive plant retooling to get its bottom line back in shape as it produces the product mix consumers are looking for. This is a good step for Ford, even though it will be costly. The $75 million price is minor considering the cost of doing nothing.

Ford says the production of newer, fuel-efficient cars at the Michigan plant will begin in a few months, with completion sometime in 2010. It's also moving 1,000 of the employees from that plant to another one in Wayne, Michigan to increase production of the 4-cylinder Ford Focus sedan. Since Ford spent $300 million just three years ago to build the plant to be flexible, this should speed the conversion, according to the automaker.

It's just too bad that Ford can't unveil more small car production in November instead of just starting to convert a plant for a few years down the road.

Ford to spend $75 million retooling truck plant for small cars originally appeared on BloggingStocks on Wed, 27 Aug 2008 13:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Alan MulallyAlanMulallyFFord MotorFord plantFord trucksFordMotorFordPlantFordTrucksinthenewsWay ForwardWayForwardWed, 27 Aug 2008 13:20:00 EST<![CDATA[Ford lays off 300 Detroit-area auto workers]]>http://www.bloggingstocks.com/2008/08/12/ford-lays-off-300-detroit-area-auto-workers/http://www.bloggingstocks.com/2008/08/12/ford-lays-off-300-detroit-area-auto-workers/http://www.bloggingstocks.com/2008/08/12/ford-lays-off-300-detroit-area-auto-workers/#commentsFiled under: , ,

More bad news for Ford Motor Co. (NYSE: F). After announcing a mammoth $8.6 billion loss just three weeks ago, the company is laying off 300 workers in the Detroit area. The workers at the Romeo Engine Plant are being let go due to a steep drop in demand for vehicles which use a V8 engine that goes into a majority of Ford's trucks and SUVs. As gas prices have climbed, large truck and SUV sales have plummeted.

The layoffs start Monday, according to a Ford spokesperson. The 300 being let go are a good chunk of the 1,075 people employed at the Romeo plant. Perhaps Michael Moore should show up and film another movie.

After Ford saw an 18% drop in truck and SUV sales during the first seven months of 2008, its Way Forward plan needs to be pushed into high gear. Ford needs to make the product mix as flexible as possible to meet the changing demand arising from changing tastes and gas prices fluctuations.

This situation reminds me of Clayton Christensen's Innovator's Dilemma a bit. Instead of innovating in the supply chain and manufacturing flexibility arenas, automakers that aren't adept at near-instantaneous changes in consumer buying habits are finding out just how painful the status quo can really be.

Ford lays off 300 Detroit-area auto workers originally appeared on BloggingStocks on Tue, 12 Aug 2008 12:42:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>FFord layoffsFord MotorFordMotorFordResultsinthenewsRomeo Engine PlantRomeoEnginePlantWay ForwardWayForwardTue, 12 Aug 2008 12:42:00 EST