Ford needs deep labor cost cuts amid crisis-analyst [Archive] - Ford Inside News Community

: Ford needs deep labor cost cuts amid crisis-analyst

02-21-2007, 10:00 PM
I hope that the union give the concession for the survival of Ford 20070220:MTFH16973_2007-02-20_16-00-05_N20265546&type=comktNews&rpc=44
DETROIT, Feb 20 (Reuters) - Ford Motor Co. (F.N: Quote, Profile , Research) is going through a "meltdown" and will ask the United Auto Workers union for deep concessions in pay and benefits during contract talks set to begin this summer, a labor economist said on Tuesday.

Sean McAlinden, an analyst for the Center for Automotive Research in Ann Arbor, Michigan, said Ford's U.S. market share loss and the competitive threat to its F-Series pickup trucks could upset the assumptions behind the turnaround effort at the No. 2 U.S. automaker.

"They are going to start burning through their cash faster than they thought they would, maybe at twice the rate," McAlinden said after a presentation on the outlook for this year's crucial round of contract talks for the auto industry.

McAlinden said he thought Ford needed as much as a 20-percent cut in wages and benefits for hourly workers as a kind of emergency concession of the kind the union granted Chrysler when it was on the brink of failure in 1980.