Ford expanding buyout offers at Ohio, Mich. plants

DETROIT (AP) — After falling short in previous attempts to trim its hourly ranks through buyouts, Ford Motor Co. is trying again — likely to make room for new hires making about half the wage of current workers.

The Dearborn automaker said it plans to begin offering buyouts next Monday to employees at facilities in Michigan and Ohio, including plants that have temporarily shut down or eliminated shifts.

They include truck and sport-utility vehicle assembly plants, and stamping and parts operations.

The company also plans to offer buyouts in August at three Detroit-area plants making axles, transmissions and engines.

Earlier this year, Ford announced corporate-wide buyout and early retirement offers for U.S. hourly workers. But only 4,200 took the offers, far fewer than the company wanted.

Monday’s announcement builds on targeted buyouts offered in June at other plants in Kentucky and the Midwest.

Ford has said high gas prices are sending consumers away from trucks and SUVs toward more fuel-efficient cars and crossovers. The shift is forcing production cuts at truck and SUV plants and increases at some factories that make smaller vehicles.

Ford, which recently announced it will cut third- and fourth-quarter production and delay the launch of its new F-150 pickup by two months, also seeks to cut about 12 percent of its salaried work force.

Ford expects to detail further changes to its restructuring plan when it announces second-quarter financial results Thursday.

Ford spokeswoman Anne Marie Gattari said the latest buyout round is not a prelude to any announcements later this week but follows commitments the company made regarding buyouts when it reached a national contract with the United Auto Workers in October.

As with previous buyout offers, workers could get $50,000 to $140,000, depending on seniority. Some of the packages pay for education or help people start their own businesses.

A message was left Monday for UAW spokesman Roger Kerson.

Greg Gardner, an analyst with the Oliver Wyman Group, which authors a respected annual study of auto plant productivity, said Ford likely is offering the buyouts in Northeast Ohio and Southeast Michigan to create openings for new hires who will be paid around $14 per hour, about half of what current workers make.

Although it’s possible Ford could be planning to close a factory in the areas, Gardner said it’s more likely the company wants to hire at the lower wage and open jobs for existing employees who are being paid even though they are not working due to previous production cuts or plant closures.