Ford's Oakville, Ontario, plant will see another loss of 500 jobs as Ford attempts to match projected employee output with projected market demand for their vehicles. The third body and paint shift will be eliminated in an effort to cut costs. The plant has more than 3000 workers and produces the Ford Edge, Ford Flex, and Lincoln MKX crossovers. The Lincoln MKT crossover, new for 2009, will also be made in the plant. Most of the vehicles produced in the plant are sent to the United States.
According to Ford of Canada spokeswoman Lauren More, retiring employees will receive a $75,000 allowance along with $35,000 toward the purchase of a new Ford. There is currently no deadline for accepting the retirement package, and Ford has not sent layoff notices. Retirement incentives at the Oakville plant were last offered in 2004, with 700 employees accepting the offer at the time. According to More, "we can meet the market demand as we see it with the two shifts," due to the current economy and weakening consumer demand.
More expects U.S. light-vehicle sales to fall 9 to 12.5 percent compared with last year's total. Through August, the Ford Edge has sold 11.7 percent more than 2007, and the MKX has sold 4.0 percent less. The Ford Flex, which was launched this summer, has sold 5593 units since its launch, including 2010 in August.
Source: Automotive News (subscription required)