Via Bloomberg
Ford Motor Co., boosted by record profits in North America, is likely to hire more than the 12,000 new workers that it promised in its 2011 contract with the United Auto Workers, according to its top American executive.
Via Bloomberg
Ford Motor Co., boosted by record profits in North America, is likely to hire more than the 12,000 new workers that it promised in its 2011 contract with the United Auto Workers, according to its top American executive.
“The business has grown faster than we predicted it would in 2011,” Joe Hinrichs, Ford’s president of the Americas, said in an interview yesterday. The company’s hiring “is definitely ahead of schedule and there’s a high probability we’ll overshoot” the 12,000 hourly jobs it committed to create in the 2011 contract.
The second-largest U.S. automaker said yesterday it hired 2,000 new workers at its Claycomo, Missouri, factory, where it is investing $1.1 billion to add production of the Transit cargo van to the F-series trucks the plant also builds. Ford said it now has completed about 75 percent of its commitment to hire 12,000 workers by 2015.
The company has said it employed 84,000 workers in North America at the end of last year, up from 75,000 at the end of 2011, when it reached a four-year agreement with the UAW.
The hiring helps lower Ford’s labor costs since new hires are paid slightly more than half the $27 an hour veteran workers make. More than one-in-five Ford U.S. hourly workers now make the lower wage, Hinrichs said, including 26 percent of the workers in Claycomo.
Record Profit
“The 2,000 new jobs and hiring we’ve done here has certainly increased the entry level percentage here, which lowers the blended costs of labor and overhead,” Hinrichs said by phone from the Claycomo plant. Lower wages paid to new workers “has been an important part of the more competitive cost structure in North America.”
Ford had a record pretax profit of $8.8 billion in North America last year on surging sales of F-series pickups, Escape sport-utility vehicles and Fusion family sedans. In the first quarter, Ford’s North American pretax profit fell to $1.5 billion, from $2.4 billion last year, as the automaker spends heavily to retool two F-series factories to prepare to produce a new aluminum-bodied version of the truck.
The automaker, based in the Dearborn, Michigan-based, is rolling out a record 23 new models worldwide this year, including a redesigned version of its 50-year-old Mustang sports car. The hiring buildup is connected to the product line overhaul, said Eric Lyman, vice president at auto researcher TrueCar.
“They’re about to re-launch some of the defining vehicles for the Ford brand,” Lyman said. “That gives them the opportunity to reintroduce their products and their brand to the American consumer and get some momentum behind products that are so emotion-driven. People are passionate about Mustangs and trucks.”

Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →
A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.
Read More →Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.
Read More →
U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.
Read More →
Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.
Read More →
Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
Read More →
Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.
Read More →
The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.
Read More →