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Layoffs Coming: Tariffs Cost Ford $1 Billion, Company Will Cut Jobs

Mac Slavo
October 9th, 2018
SHTFplan.com
Comments (58)
Read by 1,812 people

The warnings against tariffs were not heeded by the United States government, and they are now coming to fruition.  Ford Motor Company has announced that the Trump Administration’s tariffs on imported Chinese goods and retaliatory tariffs have cost the company $1 billion and they will lay off workers to cover that cost.

Trump’s tariffs and the retaliatory tariffs they triggered from the Chinese government are taking a major toll on the U.S. auto industry.  Ford CEO Jim Hackett told Bloomberg last month that tariffs on imported aluminum and steel alone dealt a blow to company profits. “From Ford’s perspective the metals tariffs took about $1 billion in profit from us,” Hackett said. “The irony of which is we source most of that in the U.S. If it goes on any longer, it will do more damage.” 

Trump’s auto tariffs have impacted the company to the tune of $1 billion, and the president’s trade policies threaten to play havoc with Ford’s ongoing reorganization, Chief Financial Officer Bob Shanks warned.

Ford will be making cuts to its 70,000-strong white-collar workforce in a move it calls a “redesign” of its staff to be leaner, have fewer layers, and offer more decision-making power to employees, the company announced according to NBC News. “A lot of the [reorganization] is about making different choices about strategy,” Shanks told NBC News, adding that the goal isn’t just to slash spending but to improve the “fitness” of the company.

The exact number of layoffs is not yet known, however, a recent report by Morgan Stanley estimates “a global headcount reduction of approximately 12 percent,” or 24,000 of Ford’s 202,000 workers worldwide. “Such a magnitude of reduction is not without precedent in the auto industry,” analysts wrote in the investment note. And the result of the tariffs will make an impact on the U.S.’s workforce. Ford is also lagging behind their competition, selling an anemic 32.8 vehicles per employee. Long-time rival GM puts out 52.7 vehicles per employee. It’s unclear exactly how improved efficiencies will impact potential job cuts, reported NBC News.

Trump originally threatened Ford with hefty tariffs on vehicles the company intended to start importing from a factory in Mexico. This was back when Trump was nothing more than a presidential candidate.  Ford backed out of the plan to import cars from Mexico, but rather than return production to the U.S. it decided to move it to China to cut costs. Ford also stopped plans to create a crossover vehicle because of the trade war. “This is the first of potentially many vehicles that will disappear from the U.S. market” due to the trade war, Kristin Dziczek of the Ann Arbor, Michigan-based Center for Automotive Research warned.

The effects of the trade war will begin to ripple across the economy any time now, making products more expensive and costing Americans more jobs.  This trade war will be paid for by the American worker and consumer, and it’s beginning to look bleak as neither country appears to want to budge.

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Author: Mac Slavo
Views: Read by 1,812 people
Date: October 9th, 2018
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

58 Comments...

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  1. Anonymous says:

    I’ll believe what I see happen, not what someone tells me to see because they want me to support some agenda they hold.

    • durangokidd says:

      The business cycle is ending. Layoffs would naturally occur anyway because there is excess inventory and fewer buyers for new trucks because of the price of new trucks, used trucks (principle of substitution), and the fact that Ford trucks are of very high quality: which is why they have been the best selling vehicles for many years.

      Nothing to see here, move along. 🙂

      • durangokidd says:

        The higher production rate per employee of GM trucks (Silverado’s) to Ford (F-150, 250, etc) may be the reason that Ford Trucks are PERCEIVED by the marketplace (and evidenced by sales) as superior. Lower production values per employee should translate into better quality construction and I believe it has.

        Dodge Ram has moved into Second Place ahead of GM as a superior value; given it’s quality, design, and price; proving that more is not better. 🙂

      • durangokidd says:

        “Morgan Stanley estimates “a global headcount reduction of approximately 12 percent,” or 24,000 of Ford’s 202,000 workers worldwide. “Such a magnitude of reduction is not without precedent in the auto industry,” ….

        PRIOR to the end of, or with the anticipated end of the business cycle, EVERY business cuts approximately 10% of it’s workforce. This ten percent is typically the marginal employee or “dead wood” within an organization.

        If you want your “plants” to grow you gotta prune them. Pun intended. 🙂

    • durangokidd says:

      The TIMING for tariffs on China is PERFECT !!! 🙂

  2. NunyaBidness says:

    Sorry Trumplings, you’re going to have to own this too. If you want to heap credit on him as the economy’s savior, then you gotta be consistent.

    And sorry, he’s fixed NONE of America’s burgeoning economic problems.

    • Kevin2 says:

      Even quoting smoking isn’t painless but its still the right thing to do. We cannot sustain what we had that eviscerated US manufacturing.

    • Anonymous says:

      Nunya, tell me:

      How are you doing worse now than you were before Trump took office, and why?

    • Sir Padre says:

      Steel and aluminum are part of a classification known as “Strategic Materials”; bad idea to have any other Nation CONTROL YOUR ACCESS to strategic materials. Reversing the regulations and taxes that drove these companies out of the country to begin with is part of an overall strategy that includes tariffs.

      Fixing our economic problems would require a Marine Raid upon every office and Officer of the Federal Reserve Banks upon charges of fraud, followed by complete asset forfeiture of same; all of said assets to be directed to the US Treasury, which would thereafter provide US Notes as currency.

      What you should be wondering is whether or not Trump would do that very thing.

    • Glenn says:

      I agree Nunya. But on this site they turn a blind eye to Trump’s screw ups. Or pay no attention to it.

      You can even see it in the article, in the VERY FIRST sentence no less; “warnings against tariffs were not heeded by the United States government, and they are now coming to fruition.”

      Uhmm, “United States government” means President Trump, y’all.

      But nope. Not on this site. Half of them here pay no attention to the screw ups or blame others, such as an entity, like the US government, for his poor choices and decisions. They only look at the bright side of things and the positive in all people.

  3. Mr West says:

    Sounds like this was written by the Chinese’s. I m sure it was.

  4. Mr West says:

    The price of a Ford F250 Super Duty has risen 300% in the last 10 years. This while purchasing Chinese crap with no tariffs.

  5. Hybrid Fords says:

    Ford Corporation let Toyota beat it in Hybrid technology.

    Ford still Fails to make a Hybrid 8 F150 truck…

    When the F150 is empty, it runs on low power 4 cylinders and hybrid electric power.

    When towing a boat or full of cargo, the Truck should auto detect the increased weight and load and activate the full V8 power to pull the load.

    I love Fords & look forward to their redesign and better fuel use!

  6. Tinman says:

    Sure blame Trump but two days ago the news said car sales are down 20% so lets change the narrative again.

  7. True Grit says:

    Ford is full of shit!!!
    They are using the tariffs as an excuse to hide the truth of their poor business practices.
    You can only sell substandard junk to the public for so long before it backfires. Ford hasn’t made a good product since the 1967 F series trucks.

    They buy the cheapest crap components they can and screw them together. Never passing along any savings to the customer.

    If the tariffs were really to blame, they would be cutting production jobs. They are cutting Fat.

    • The Deplorable Renegade says:

      TG, I once had a 1990 F150 that was a damn good truck until I got hit by an idiot in a U-Haul. Their cars do leave a lot to be desired but their F-series trucks, E-series vans, and full-size SUVs are still good. At least the older ones were.

    • durangokidd says:

      If your rant were true, F150’s would not be the BEST SELLING TRUCK in America for what ??? ….. 20 …. 25 years in a row ??? The American truck buying consumer is not stupid.

      At least not the ones who can afford to fork over $50-60k for a new truck. Think again. 🙂

  8. Houston/Cypress/Katy/Shtf says:

    I WARNED EVERYONE ON THIS SITE 3 YEARS AGO, ITS HERE NOW.

    http://www.thecommonsenseshow.com/can-america-be-successfully-invaded-and-occupied/

    I warned you all about this didn’t I. Here is the latest. This is why my source was so pissed when he was threatened by the PLA in forth worth 2 years ago.

    There is a Chinese general/captain in north Texas on standby to run the attack on the civilians of the east Texas and Dallas forth worth area. Then they will attack us from the southern Texas border. I am just telling what it sounded like. Kevin2, I don’t need to hear your shit comments on my post. So piss off and shut up. You are 100% troll, not one of us on this site, and I have been monitoring your post for years, you are fucking fraud. David Hodges has been told the evidence by deep background sources, so stop the lies and bullshit on this site. Because as of now chi-com soldiers are advancing toward the Columbian border and the Venezuelan border to protect their Oil fields and rigs off the cost of that Venezuela. We are going to war, with china right here in Arizona and right here inside of Texas, right up here in Houston , cypress, Katy and all surrounding cities.

    HCKS.

    • Tommy says:

      We need to go on offense. Let’s blow up all the Chicom massage parlors.

    • Kevin2 says:

      Wars are won and lost with logistics (fuel, transportation, food and ammunition). Even gerrellas depend upon it and receive it from a population that voluntarily provides them with shelter and food. Armies need bases and air power. China has none of the above in this hemisphere. It took the US two years to stage for the Normandy invasion. Read history.

      GTFOOH

    • Deporter84 says:

      As anyone who has been around here for a few years knows. I was a US BORDER PATROL AGENT in Arizona. I have said it before this is a fact, the first instance I can recall is in 2007 about 20-25 Chinese Army fully armed were about 7 miles into Arizona when they opened fire on Border Patrol Agents. They were in Chinese military vehicles and armed to the hilt. I was wrote off as a mistake/training exercise mistake. Some joint training with Mexico. My station caught between 50 and 70 Chinese Nationals in 2011. They said there was another 2000 waiting to cross the border and attack. Theses were the asylum seekers (my ass). There are to many reports of Chinese military in Mexico, Venezuela and Colombia for this to not be some Red Dawn shit.

    • you lose credibility whenever you attack someone, HCKS.

      Calling everyone who disagrees with you a troll is far more telling about you than it is anyone else.

  9. aljamo says:

    Lower your prices by half and you will sell more. Build a drastically cheaper reliable basic bare bones automobile and they’ll sell like hotcakes. Note the writing on the wall, few can afford your grossly overpriced gas hogging highly expensive to repair behemoth contraptions.

  10. Houston/Cypress/Katy/Shtf says:

    https://www.youtube.com/watch?v=hes9aoDELxQ

    What to expect, get ready shtf-effers. They will do this in right here Texas. I cant wait for the chi-coms to start this shit here.

    HCKS.

    • Someone in the Back Room says:

      Whether it be the first or second movie, it is an eye-opener. Personally like the first (more believable, more info, more concise for its time, etc. / the second is more action-packed, but less believable).

      But HCKS is quite correct, if they come in force then this may well be the way it is done. Especially if we are in a civil war or we have an “Event”.

      • Someone in the Back Room says:

        Addition:

        Actually viewed the first movie at the theater. It was an eye-opener not just because of the movie but because there were several people there that were very vocal (shouting with fist raised) during various scenes of the movie.
        It makes one realize that sometimes you don’t have a choice about what happens and you may have to fight for what is right, and/or just to survive.

  11. george says:

    Ross Perot was dead on .
    That giant sucking sound since 1993 .

    • Anonymous says:

      And none of those ridiculing him back then have ever bothered to apologize for it.

      • Kevin2 says:

        Ross Perot put Clinton in office by pulling votes from the hard core NAFTA supporter GH Bush 41. Bush 41 did not have the political horse power to get the necessary Democrat votes in the House of Reps to NAFTA passed; this is why they needed Clinton. When Perot looked like he could actually win in a 3 way split he sabotaged his own campaign. He had zero intention of actually becoming President. He was the spoiler. As we know Clinton said, “No NAFTA” on the campaign (heard it myself) but immediately upon becoming President did a 180 getting the Democrat Congressmen to abandon their long term friend, labor.

        They’re very good at being very bad. Perot has been an insider for decades.

  12. rellik says:

    To me this is the real story
    “Ford is also lagging behind their competition, selling an anemic 32.8 vehicles per employee. Long-time rival GM puts out 52.7 vehicles per employee.”
    I do not buy new vehicles, but many people do.
    You cannot survive if your revenues are that much lower
    than your competition.

  13. Nailbanger says:

    Never mind the fact that these guys buy all their parts overseas,,,,,,
    Perhaps the purpose of these tarrifs is to bring manufacturing back home, sorta stupid to blame the tarrif, i blame the idiot corporate crooks and the greedy politicians who allowed our manufacturing to go overseas,,,,,common sense people,

  14. Oldboy says:

    I thought Ford was dropping ALL cars except the Mustang, and that was the primary driver for layoffs.

  15. Ford builds mostly in mexico, EFF ford.

  16. I'll Fight Your Mom says:

    Nobody ever said the tariffs would be easy, but they are necessary.

    • awed bawl says:

      bullshit, refuted a jillion times

      you guys fail to mention the (((paper money hegemon))), or the (((income tax))) or the psycho regulation or affirmative action for unqualified workers [blacks, and white ladies] or the govt screwing with our biochemistries or political correctness or the (((commie controlled))) universities

      “Lenin was right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

  17. Buy American.

    Unless and until we commit to support our own people right here, we are going to continue to get taken advantage of by greedy no account bums that don’t care one iota about us.

    _

  18. Jim in Va. says:

    With stagnant wages who can buy any expensive car? Most are buying used or leasing new. Thats where the market is. Wait til gas goes up to 5 bucks or more a gallon……then your trucks will drop off.

  19. ORRonin says:

    Do you know where people who can’t get into Wharton go to business school? Harvard and Stanford! Trump is spot on about tariffs. Our cars selling in Canada carry a 25% tariff Canada cars sold here carry a 2.5% tariff. Our trade balance has been upside down for decades due to this ridiculous policy. Same for steel and aluminum. And myriad other products. Free trade means just that. Both economies stand on equal footing. Inequitable protectionist policies always end up hurting us. Post WWII there was reason to protect Japanese and German companies in order to grow their rebuilding economies. These policies should have been deep sixed about 50 years ago. ‘Bout damned time somebody in charge took notice and fixed the damn thing.

    Trump is also spot on about any and all strategic commodities should be manufactured here in the US. How stupid do we have to be to allow critical parts to be manufactured overseas? Good job Mr. President!

  20. Kevin2 says:

    I have read (at this blog) that some of the misguided believe that “Free Trade” is American. That good old, “survival of the fittest”. Well these people disagree.

    “Protection of our own labor against the cheaper, ill-paid, half-fed, and pauper labor of Europe, is … a duty which the country owes to its own citizens.”
    Daniel Webster

    “The wealth … independence, and security of a Country, appear to be materially connected with the prosperity of manufactures. Every nation … ought to endeavor to possess within itself all the essentials of national supply. These compromise the means of subsistence, habitation, clothing, and defence.”
    Alexander Hamilton

    “Free trade results in our giving our money … our manufactures and our markets to other nations. … It will bring widespread discontent. It will revolutionize our values.”
    William McKinley

    “Open competition between high-paid American labor and poorly paid European labor will either drive out of existence American industry or lower American wages.”
    William McKinley

  21. Old Guy says:

    Ford had already announced that they where planning on discontinue making cars and just build trucks long before Trump uttered a word about any Tariffs. They built crappy cars in other countries nobody there could afford. And Imported them here .

  22. I have read that the trucks cost anywhere between 40-60% of price to make. A lot of the price goes to legacy costs. So a 75,000.00 that is 30-45K per truck for cost to make might have something to do people not buying as many??
    I make good money but can’t see affordability here? I have to go back to a 2012-2014 to be able to make it make sense 🙁

    • durangokidd says:

      Used Ford trucks DO make sense. The quality is HIGH and they last a long time if you take care of them. I have a 2010 F 150 Crew Cab (XLT) with 130k miles and change the oil & filter every 5,000 miles as recommended ($45).

      Fit and finish is great. The engine hummmms quite nicely. Interior is very comfy. I have had new cars before, including nissan & chevy camaro. This is the best quality vehicle I have ever had.

      While I think about a new F 350 or higher for towing & hauling from time to time, I am quite satisfied with what I have. Its Ford tough. 🙂

      • I have long wanted a 250 6.7L diesel. Right now we constantly run into issues that we need a truck for….like today. We want a 7.1cuft freezer at lowes, which is less than 10th of a mile…..but it wont fit in either of our Honda accords.

  23. Houston/Cypress/Katy/Shtf says:

    Deporter84 welcome to the board. My cop friend told me something similar. China has air bases In panama, and want to add more in venezeula. These dumbasses on the website have not idea what is really going at the border and in Mexico. There you go Mr kevin2, like I said, your better off just shutting up on this site. Kevin2 is 100% troll.

    HCKS.

  24. CinniMinni says:

    CAR-na-gion has been happening for the decade. They keep paying executive millions to “run” a failing company, and ship their number purchaser’s jobs overseas….what did you think was going to happen????

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