Post by TonyV on Feb 24, 2010 0:36:35 GMT -5
Posted: 7:22 p.m. Feb. 23, 2010
Ford Credit job cuts largely spare Dearborn
By BRENT SNAVELY
FREE PRESS BUSINESS WRITER
Ford Motor Credit, the lending and financing arm of Ford, told employees today that it plans to cut about 1,000 jobs, or 20% of its U.S. workforce by the end of this year.
Company spokeswoman Margaret Mellott said the company hopes to achieve some of the reductions by not replacing employees who retire or voluntarily leave the company.
However, a majority of the reduction will come in the form of job cuts that will occur by March 31.
Mellott said seven of Ford Motor Credit’s 10 business centers across the U.S. will be affected by the job cuts, while the company’s Dearborn headquarters will largely be spared.
In Dearborn, Mellott said about 35 positions out of 1,100 will be eliminated.
Ford Credit reported net income of $1.3 billion in 2009, compared with a net loss of $1.5 billion a year earlier.
Mellott said the job cuts are necessary due to a combination of record low industry sales and Ford’s decision to sell several brands.
Ford’s U.S. sales dropped 15.3% last year as industry sales declined 21.2%.
In recent years, Ford has sold Jaguar and Land Rover and the company expects to complete the sale of its Swedish Volvo brand by June, reducing Ford Credit’s projected business volume.
Ford Credit provides consumer loans to car buyers as well as inventory loans to auto dealers.
“As we continuously reassess the business, this action was necessary to meet the current and projected business conditions that we see,” Mellott said. “This is not going to affect our services for our dealers or our customers.”
Today’s announcement was similar to a 20% workforce reduction that occurred at Ford Credit last year when the lending arm cut about 1,200 U.S. jobs.
Ford Credit job cuts largely spare Dearborn
By BRENT SNAVELY
FREE PRESS BUSINESS WRITER
Ford Motor Credit, the lending and financing arm of Ford, told employees today that it plans to cut about 1,000 jobs, or 20% of its U.S. workforce by the end of this year.
Company spokeswoman Margaret Mellott said the company hopes to achieve some of the reductions by not replacing employees who retire or voluntarily leave the company.
However, a majority of the reduction will come in the form of job cuts that will occur by March 31.
Mellott said seven of Ford Motor Credit’s 10 business centers across the U.S. will be affected by the job cuts, while the company’s Dearborn headquarters will largely be spared.
In Dearborn, Mellott said about 35 positions out of 1,100 will be eliminated.
Ford Credit reported net income of $1.3 billion in 2009, compared with a net loss of $1.5 billion a year earlier.
Mellott said the job cuts are necessary due to a combination of record low industry sales and Ford’s decision to sell several brands.
Ford’s U.S. sales dropped 15.3% last year as industry sales declined 21.2%.
In recent years, Ford has sold Jaguar and Land Rover and the company expects to complete the sale of its Swedish Volvo brand by June, reducing Ford Credit’s projected business volume.
Ford Credit provides consumer loans to car buyers as well as inventory loans to auto dealers.
“As we continuously reassess the business, this action was necessary to meet the current and projected business conditions that we see,” Mellott said. “This is not going to affect our services for our dealers or our customers.”
Today’s announcement was similar to a 20% workforce reduction that occurred at Ford Credit last year when the lending arm cut about 1,200 U.S. jobs.