Filed under: Industry, Ford Motor (F), Toyota Motor Corp. (TM), Economic data, Recession
Ford Motor Co. (NYSE: F) has decided to take even more costs out if its operations. Where it will find the people and extra expenses is nearly impossible to imagine. According to The Wall Street Journal (subscription required), “with more than half of Ford’s plant saddled with excess capacity, Ford officials believe the push to control overtime is paramount.”
The vehicle company is also sending signals that it will have to take out more people.
Ford has nearly certainly reached the fork in the road. At some point, the company won’t have the capacity to rebuild its business when the domestic market begins to come back. The real competitors in the market, Toyota (NYSE: TM)and Honda (NYSE: HMC) will keep investing in new development and marketing, and will keep their capabilities to manufacture new products at reasonable levels.
Ford may be able to save its present by sacrificing its future. And, if things go badly, it will not matter how much the company cuts. The U.S. car market is that bad.
Douglas A. McIntyre is an editor at 247wallst.com.
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