Describing announced cuts of 4,000-5,000 white-collar jobs in mid-August as an “initial action,” Ford Motor Co. CEO Jacques Nasser tells reporters the following day that there may be more. Speaking at the Concours d'Elegance auto show in Pebble Beach, CA, he points to what continues to be a sluggish economy as the culprit for the “voluntary separation program,” saying he sees no turnaround for another year or so. Interest rate and tax cuts have so far done little to stimulate the economy. Combined with Ford's current $3 billion bill to replace 13 million defective Firestone tires and increased competition in the hot truck and sport/utility segment, the situation looks bleak for the automaker. Ford Chief Financial Officer Martin Inglis says the white-collar workforce reduction will generate annual pre-tax savings of more than $400 million, about $275 million after taxes. Although cuts affect only white-collar workers, union jobs also are possibly in jeopardy. Suppliers, too, are bracing for further cost-reduction demands. In other Firestone-related news, on Aug. 22, 23 and possibly 24, Mr. Nasser was expected to give a deposition to lawyers representing plaintiffs in more than 300 lawsuits involving rollovers of Ford Explorers with Firestone tires. Chairman William Clay Ford Jr. was expected to give his deposition in early September.
