Ford to brief UAW on U.S. business challenges

Automotive News | June 11, 2008 - 7:45 pm EST

DETROIT (Reuters) — Ford Motor Co.’s top manufacturing executives will meet union leaders and plant managers on Friday to discuss the challenges faced by the automaker, including a slump in pickup and SUV sales.

Ford spokeswoman Angie Kozleski said the meeting, to be hosted by its global manufacturing chief, Joe Hinrichs, and its labor affairs chief, Marty Mulloy, was called to apprise its union on the "changing business situation."

UAW officials see production plans for next year as likely to be on the agenda at the meeting, which is to be held in downtown Detroit.

"Although the meeting notification did not specify this, we are anticipating we will be informed of at least some of the decisions being made regarding 2009 production plans at this meeting," UAW Local 249 said on its Web site.

The local, representing some 4,700 workers at Ford’s Kansas City plant that builds the F-150 pickup and Escape crossover, also said it may lose one shift of pickup truck production. That would put about 800 hourly workers on indefinite layoffs, the union local said.

Ford can no longer afford to keep five shifts of F-150 production as record gasoline prices have depressed sales of large trucks, the union said.

Ford, whose U.S. vehicle sales have plunged 12 percent through the first five months of 2008 due to tumbling truck sales, is in the process of boosting production of its fuel-efficient cars and crossovers and cutting truck output.

The automaker has been exploring ways to increase production of its Focus car, which is built only at a plant in Wayne, Michigan, that could be approaching full capacity if sales remain at high levels.

Last month, Ford dropped a long-standing goal of returning to profitability in 2009, saying the shift in consumer demand toward fuel-efficient cars and crossovers and away from trucks and SUVs was permanent.

Ford is assembling a plan to retool its North American truck plants to build cars in a bid to keep up with changing U.S. consumer demand, the Detroit News reported on Wednesday, adding that details were expected to be announced in July.

Under the latest plan, Ford would revamp some of its North American plants to produce vehicles now built in Europe, where it is a leader in the small-car segment, the paper reported, citing people familiar with the company’s plans.

Ford’s Kozleski declined to comment on the report.

Mark Fields, Ford’s president of the Americas, told reporters at an electric car conference in Washington that it was important to explain to employees the challenges the company faces and its strategies for overcoming these issues. He also said Ford would shift production as needed.

"We are going to have to make sure that we have manufacturing facilities that are able to deliver product that customers want," Fields said. "As we go along, if we have to retool plants we will."