AFSCME 3357-HOF'S BLOG

More than Half of Ford Workers Accepted Buyouts
35,000 Workers to Voluntarily Leave

Wonder why Ford was looking for $18 billion in cash? It looks like a couple billion of it will go to pay off workers who accepted the company's buyout offer. According to the Detroit News, more than half of Ford's blue collar workforce accepted the buyout, thus opening the door for thousands of lower-paid "temporary" workers. It also opens the door to transfer Visteon workers to Ford, thereby enabling the planned closing of Visteon plants.

I believe that Ford's cash management in this crisis period has been better than General Motors'. By selling off valuable assets piecemeal, the General is giving up the assets that may open the door to eventual profitability. On the other hand, Ford borrowed against its assets. Ford is using proceeds to cut structural costs, but it is retaining the assets necessary to be profitable down the line.