Ford May Expand Attrition Program

Washington DC August 22, 2006; The AIADA newsletter reported that Ford Motor Co. is considering a major expansion of its attrition program for hourly workers and could extend buyout or early retirement offers to all of its blue-collar employees in the U.S., reports The Detroit News.

Sources from Ford said the automaker has not made a final decision on the possible buyout expansion. "We've had ongoing discussions with the union about these buyouts and where they'll take place," said Ford spokeswoman Marcey Evans.

News of the expanded attrition program has prompted some analysts to boost their rating of the automaker, while others remain skeptical of Ford's Way Forward restructuring plan. "A more aggressive restructuring plan, including new attrition plans, could save Ford $3.5 (billion) to $4.5 billion per year, but revenue and product mix remain concerns," said Jon Rogers of Citigroup.