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  Home arrow California Real Estate arrow Ford Motors cut costs at real estate
   
Ford Motors cut costs at real estate PDF Print E-mail
Tuesday, 26 September 2006

DEARBORN -- Ford Motor Co. is outsourcing part of its Ford Land division operations and plans to close 60 Ford Credit branch offices and eliminate some 1,500 Ford Credit jobs as part of its ongoing North American restructuring effort.

The automaker is negotiating with the Trammell Crow Co. to take over some aspects of Ford Land's operations, including construction and maintenance. The details of that agreement are still not final, but Ford spokeswoman Marcey Evans confirmed Monday that Ford has been in talks with the global real estate management company since June.

Ford sources confirmed a report by Automotive News that Ford Credit plans to close approximately 60 branch offices across the U.S. and consolidate those operations in six existing regional centers.

Ford is struggling to rein in costs as it braces for what could be one of its biggest annual losses ever.

While most employees who work directly with dealers will stay in their current locations and work out of home offices, other branch staff will have to transfer to one of the regional centers. The magazine said that consolidation, combined with other cost-cutting moves, is expected to eliminate about 1,500 jobs -- that on top of the 10,000 salaried positions Ford plans to cut from its U.S. automotive business by the end of next year.

Ford's North American automotive operations stand to lose more than $6 billion this year, and its sales and market share continue to wither in the face of foreign competition.

Earlier this month, the automaker announced a sweeping restructuring plan that aims to trim $5 billion in operating expenses over the next several years.

Ford Credit already has cut approximately 6,000 jobs and eliminated more than 100 branch offices since the end of 2002.

Ford will try to find other positions at the company for those who don't want to transfer or take buyouts.

Bruce Roberts, a construction worker at Ford's research and engineering complex, said he and his co-workers were told buyouts would be offered to all Ford Land employees in their group.

"Everybody's up in arms. Nobody knows what to do," said Roberts, 56, who has worked at Ford for 34 years. Ford Land was established in 1970 to manage the development of the Fairlane Town Center. It is responsible for managing the automaker's real estate, construction, energy and facilities worldwide.


Edwina Baniqued

 
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