Economy Ford Plans On Laying Off 24,000 Employees

Hognoxious said:
I like my Ford truck. I probably wouldn't buy one of their cars though.
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The trucks are good and look good. They looked like shit about 5 years ago but they now look good again. But I've always hated Ford cars. Their design (inside and out) and quality have been terrible. They had started to look way way better though.

I would love an older Ford truck
 
What Ford needs to do is invent car or something, anything people will buy, domestic and foregin. If they cant, they should stop making what they are not selling, and lay those people off, and shut down the factory. Or they can contract out with other designers to make cars people will buy. As for now, their cars suck. It does not matter what their or anyone's predictions of the future economy is if they cant make something people will buy.
 
Ford says it is because of the trade war.
I don't know how accurate or honest that is, but keep in mind that Trump hasn't just gone after China, but Canada and the E.U. as well. And steel prices have gone up as a result of the tariffs.

I remember back when Obama bailed out General Motors and Chrysler, there was talk in rightwing circles of only buying Ford because they didn't want to support GM and Chrysler as result of Obama's socialist bailing-out. Well I wonder what all these 'patriotic' anti-socialist conservatives are now going to say after hearing Ford's reason for the job losses...
 
CWMMA said:
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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They are focusing more on cross-overs, suvs and utes. So why wouldn't the same people who were making the sedans just change to making these other vehicles? Ford's sedans were barely anyhow, so they couldn't have had much people building them (relative to the number of people they have building trucks, suvs and cross-overs)
 
This really was not to be a car quality thread it was to talk about expanding deficits an government actions. I brought up Ford because they have previously made major moves to protect from economic downturn.
 
Hyundai's sure have turned around in regards to reliability
 
Build better cars

- Sigmar Gabriel

Brodels said:
Hyundai's sure have turned around in regards to reliability
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The South Koreans have really upped their game the past 15 years. I don´t know if KIA in the US has caught up yet but in Europe KIA and Hyundai have made massive leaps in quality and are about equal. KIA also selling with a 7 year warranty really helps sales/resales. I think Hyundai has 5 years.
 
Cutting taxes and continuing to spend where the country is a stimulus that does grow the economy. But is it a sugar high or lead to longer term sustained growth?

Losing that many jobs at Ford will likely have a ripple effect. The places where the workers go to lunch will lose revenue. I would assume if they are cutting that many workers they are going to make less cars so the parts they buy parts from will be losing revenue too. And the people who transport those parts are going to lose revenue.

It is still a tiny amount of jobs in the overall economy but still a bummer for all those people.
 
Satsui Ryu said:
The economy has been booming for a long time and outside of the stock market which can be explained by stock buybacks, most economic metrics have been pretty consistent for a while. We were at full employment before Trump was in office.

It will be a couple of years before we see the real effects of the tax cuts so giving them any credit right now for their effect on the economy is pretty asinine. It's not like an economy will just explode a couple of month after a tax cut.
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GDP growth was sputtering at the tail end of Obama's tenure. It rapidly and radically reversed. Even the latest wage growth statistics were much better than expected. Labor participating hasn't changed, but unemployment has improved. Wall street is definitely doing better than Main Street, but don't waste my time trying to argue that Main Street hasn't improved, too.

It's a temporary weight cut. All of the corporations were adapted to an environment with a 35% tax now have a 21% tax (not to mention the 1-time repatriation tax). Of course that is going to broaden investment, incomes, profits, and cash reserves which can be leveraged, but it's a temporary effect similar to a fighter dropping a weight class for the first 1-2 fights before his body adapts to the lower class, and he no longer seems like a monster compared to everyone else. It's what you do with that growth going forward, and Trump has a spending strategy that is going to swell our debt to WWII proportions, but unlike FDR, or China with their Belt & Road initiative, he isn't massively overhauling our nation's infrastructure, our employment in support of that effort like the CCC, public health spending, social security, or the GI Bill that improved security/patriotism in the simultaneous moment it made education more accessible to the masses.

I see the value of a wall on our southern border, unlike many, but when I look at the estimates required to build it correctly, which is closer to $400bn-$600bn, not the paltry $30bn house of cards he is trying to built, and then I look at how China is spending $1tn on expanding infrastructure (including in many countries that aren't their own) as a simple investment with the aim of anchoring itself as the hub of all future economic trade between Asia, Europe, Africa, and the Oceanic, I think....well, why can't we do something more like that? Why can't we do something to build up our infrastructure and the generation of jobs south of our border more robustly so that they don't all want to come up here, where they just work crappy jobs and send half of their cash home anyway, when if we built half their stuff it would give us the leverage to dictate how their economies and governments are organized with them glad for the exchange?

The Canadians would help us. The Mexicans are desperate to be part of this team effort. There's all sorts of ways to do this with a more robust free-market approach, but it will require deep government spending. Does a wall not burden taxpayers, too? It's a matter of trade-off in strategy, and frankly, Democrat or Republican, I don't really see a comprehensive approach.
 
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Looks like Detroit just got a bunch of more depressed people added to the mix.
 
MicroBrew said:
They are focusing more on cross-overs, suvs and utes. So why wouldn't the same people who were making the sedans just change to making these other vehicles? Ford's sedans were barely anyhow, so they couldn't have had much people building them (relative to the number of people they have building trucks, suvs and cross-overs)
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Part and assembly factories are probably not in the the same location. And they already have people to do that job. You don’t hire two people to do a job if you only need one.
 
Lord of Lies said:
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.
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Trucks have been outselling cars in the US for many years tho
 
xcvbn said:
"Automaker Ford plans layoffs, blames Trump tariffs for $1 billion loss: report"

Interesting
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Nice to see they're not addressing their shitty cars as an issue.
 
MicroBrew said:
They are focusing more on cross-overs, suvs and utes. So why wouldn't the same people who were making the sedans just change to making these other vehicles? Ford's sedans were barely anyhow, so they couldn't have had much people building them (relative to the number of people they have building trucks, suvs and cross-overs)
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The other automakers are dwindling production and development of sedans as well. GM has basically abandoned their sedan platforms and FCA is still relies on their ancient Charger to fill the niche. The German automakers have seen cratering sedan sales in favor of their CUV/SUV's so they no longer prioritize them. Ford was just the first to do it but others will follow.
july-20-ytd-u-s-vehicle-sales-rankings-top-20-best-selling-top-selling-vehicle.png

Look how trucks dominate this chart. The only passenger cars are compacts and sedans have been replaced with CUV's. Automakers love trucks because they profit more off each sale and dont have to meet the stricter CAFE standards of cars.
 
also, Tesla's Model 3 is already leading its segment and the only thing limiting further domination is production speed.
20180730_Tesla_Sales.jpg

When they release the CUV version (the model Y), it will annhiliate the competition. Automakers understand this and are struggling to develop electric CUV's to match them. Hence why Jaguar rushed to produce the I-Pace and why Audi's first EV will be a CUV.
 
Cubo de Sangre said:
I'd imagine Ford is reacting to their own problems as a company far more than they're anticipating shifts in the global economy.
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I tend to agree with this. They were caught flat footed during the oil speculation during the 2000’s. Before I started working for corporate America I thought most of these companies had forward looking vision and knew what was coming on the horizon. It wasn’t till after working in that environment for s few years that I realized there are a ton of yes men and a company vision can get extremely narrow.
 
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