Economy Ford Plans On Laying Off 24,000 Employees

Discussion in 'The War Room' started by PEB, Oct 9, 2018.

  1. PEB

    PEB Atomic Butt Drop Champ :)

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    Ford who seems to have a good read in the economy are adjusting ahead of a downturn.

    There been a number of companies who have even under growth have been making adjustments.

    When companies like Ford, Harley-Davidson, Carrier, Dow Chemical and others are making cuts an moving factories could be a sign of slowing growth.

    Much of this according to the media is President Trump's trade war but I think differently. Companies use business models an historical data to determine where the economy is heading.

    They no doubt make adjustments to their business to head off a much larger problem.

    Ford as of late especially been making adjustments not unlike 2007 ahead of the 2008 recession.

    They made cuts an borrowed money ahead of the banking breakdown. Of course people will say this is what companies do from time to time to eliminate deadwood.

    This is true but Ford been signalling far deeper cuts ahead for the company. They plan on eliminating most of their car business an focus on truck sales and moving factory production to Mexico.

    At the time 2006-2007 Ford was making these adjustments the economy seemed pretty stable but fuel costs are similar to today.

    Usually fuel costs can factor in these issues but we are not there yet. I look at companies adjusting businesses as a sign of their feelings towards future growth.

    At least this is my take on recent announcement by Ford on job cuts.
    https://www.google.com/amp/s/articl...ex.ssf/2018/10/ford_layoffs_trump_tariffs.amp
     
  2. Hognoxious

    Hognoxious But you can call me Johnny Mac

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    Unfortunately, it has been a matter of time for all this to happen with the big 3 auto manufacturers. The bailouts, cash for clunkers and subprime lending moved car buying to the forefront, while stealing from car purchases that would have taken place in the future. It sure looks like we might be hitting the wall as a consequence of dumb government intervention.
     
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  3. Lowmanproblems

    Lowmanproblems Red Belt Platinum Member

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    That is a lot of jobs. Definitely won't help the economy in those areas where the jobs are lost. I don't view this as a win against Trump, I don't want to see people losing their jobs.
     
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  4. xcvbn

    xcvbn Silver Belt

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    "Automaker Ford plans layoffs, blames Trump tariffs for $1 billion loss: report"

    Interesting
     
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  5. syct23

    syct23 ...ElipsisBelt...

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    Thread needs more Clean Coal...
     
  6. *Z*

    *Z* Brown Belt

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    24000 people that won't be voting Trump in 2020.
     
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  7. Cunningham

    Cunningham Red Belt Platinum Member

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    I have owned several Fords. They make sturdy trucks but their cars are cheaply made and flimsy.

    They have no one to blame but themselves.
     
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  8. Cunningham

    Cunningham Red Belt Platinum Member

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    What an odd take. If anything they will be among the most attracted to his message....
     
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  9. Lord of Lies

    Lord of Lies Brown Belt

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    It's not a tariff issue, it's a product issue. As the article mentioned, Ford is scrapping all of their car lines in the US except for the Mustang. Why? Because cars aren't selling in the US. Look at the vehicle sales from last year and this year. The top 3 are trucks, most of the other ones are SUVs, and the sedans are down in sales each year.
     
  10. PEB

    PEB Atomic Butt Drop Champ :)

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    I understand what your saying but Carrier, Dow Chemical are really not in the car business. These like others are weighing the economic situation an see slowing growth.

    But this also could potentially signal a market correction as it relates to a potential recession.

    Ether way you look at the market currently an think what could be wrong but then look at fuel costs an raising deficits an it''s not that clear.

    Factor lower foreign investment in bonds that''s not a good sign. Ether way a very hot economy still with growing deficits is not a good sign also in regards to the economy.

    Usually when an economy is in recovery deficits are reduced. The idea is create jobs collect more tax revenue pay down the debt.

    Here we are in the 7th year of an economic rebound an the deficit continues to grow. Not signs of a good economic sustainable growth.
     
  11. 44nutman

    44nutman The Original Nut of Sherdog

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    I am a Real Estate Appraiser. The housing market is cooling off. Supplies and marketing time are increasing. The interest rate has also increased.
    Wage vs inflation, the amount you earn compared to costs of products is down.
    Other than being a scumbag con man, my biggest problem with Trump is he has added 2 trillion to the defict when the economy was booming. He cut taxes in a booming economy, just plain dumb.
     
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  12. Crazy Diamond

    Crazy Diamond 2GM/c^2 belt

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    It's not a win against Trump but it is evidence that corporations believe his actions are going to bring a halt to the current economic boom.
     
  13. Lowmanproblems

    Lowmanproblems Red Belt Platinum Member

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    I'll leave the door open for that, bit with Ford already planning to stop car production, I think this may have more of an impact on their decision than Trump.
     
    Last edited: Oct 9, 2018
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  14. Hognoxious

    Hognoxious But you can call me Johnny Mac

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    This is caused by the issues that I mentioned above. Keep in mind, there is no such thing as sustainable growth. The question is whether you give something a good foundation to build off of over the long term. The cycles of expansion and contraction will be there regardless. The U.S. car market does not have a good foundation with the government backed subprime loans in the car market. Also, everything has cycles. We are over 9 years on the current market cycle when the average is around 4-6 years. So a natural slow down would be likely simply based on what is normal.
     
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  15. splendica

    splendica Black Belt

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    A guy I work with just had the radiator crack on his Ford. It's a little car (I believe a Fusion) and like 4 years old. I believe he said it has about 70 k miles on it.

    Bottom line, I was not surprised. North American cars are not good compared to German and Japanese in particular.
     
  16. bobgeese

    bobgeese Gold Belt

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    You named 4 companies.


    I’ve listed hundreds of billions in investments in the first several months of the trump administration.


    We’re doing just fine.
     
  17. thefirstemporer

    thefirstemporer Overdone and dry! Platinum Member

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    So this has nothing to do with the vehicles that Ford will no longer be producing? Ok.
     
  18. Staph infection

    Staph infection Glue historian

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    I just hope they keep the 20,000 commercials a day going. So many of these companies complain about losing money but they advertise on tv during so many commercial breaks. That has got to cost a lot.
     
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  19. PEB

    PEB Atomic Butt Drop Champ :)

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    I can name more I just pointing out the growing issue. You keep expanding the deficit when your making great effort via stimulus first with the Fed interest rate cut then with fed. stimulus an tax cuts. Still no deficit reduction even with 7 of 9 years of heavy stimulus an market upswing. These are not good long term signs
     
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  20. CWMMA

    CWMMA Purple Belt

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    This has been planned for ages. When you cut out the entire sedan lineup people are going to get laid off.

    If you have a manufacturing job in general you should be worried.
     

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