Ford to shut down five plants in restructuring

AP Auto WriterDEARBORN, Mich. (AP) -- Calling its restructuring "painful, but necessary," Ford Motor Co.'s CEO said Friday that the automaker would shed 35,000 jobs worldwide, closing five plants and eliminating four vehicles.

"We strayed from what got us to the top of the mountain, and it cost us greatly," William Clay Ford Jr. said from company headquarters in announcing the plan designed to return the world's No. 2 automaker to profitability.

The job cuts include 22,000 in North America. Plants to be closed are the Edison, N.J., assembly plant, the Ontario truck plant, the St. Louis assembly plant, Cleveland Aluminum, and Vulcan Forge in Dearborn.

Vehicles to be dropped are the Escort, Cougar, Villager and Lincoln Continental.

"We realize that some of the things that must be done will be painful," said Ford, the great-grandson of founder Henry Ford. "I can't begin to describe how sorry I am about that."

The automaker was hit hard by a self-inflicted financial wound in 2001 when it launched a $3 billion program to replace 13 million Firestone tires that were not recalled in the original recall that began in August 2000. The move resulted in the severing of Firestone's almost century-old relationship with Ford.

In July, much of Ford's top management was shaken-up, and Nick Scheele, the man known for turning around Ford's European operations, was named to take over North American operations.

The next month Ford announced it hoped to cut 4,000 to 5,000 salaried positions by offering early retirement and buyout packages.

By October, president and CEO Jacques Nasser was forced to resign and Ford replaced him as CEO. Scheele was elevated to chief operating officer.

Both Scheele and Ford have said the future for Ford is based on getting back to basics, in product development and improvements in quality and productivity.

Ford officials also have blamed high marketing costs related to a fourth-quarter incentive war for its difficult financial position.

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