Ford to expand buyout offers

United Auto Workers union leaders on Thursday, announced that Ford Motor Company plans to expand buyout and early retirement offers to the company's U.S. hourly production work force of 75,000 as part of a restructuring plan.

The plan is likely to include job cuts and plant closings to bring Ford's manufacturing capacity in line, with the suddenly dropping demand for its cars and trucks. It is aimed at helping the troubled No. 2 automaker to bounce back to its profitability.

The retirement offers were announced by the United Auto Workers union on Thursday, a day before Ford was to detail the huge restructuring plan. The automaker plans to cut up to 30,000 hourly jobs by 2012.

Under the plan for hourly workers detailed in a UAW statement, employees can choose among eight packages that offer from $35,000 to $140,000 depending on their years of service, age and how close they are to retirement. Workers might also have to give up on health benefits as required under some packages.

According to a Ford supervisor, buyout and early retirement offers also would be made to persuade 6,000 salaried workers or about 30 percent of the staff to leave the company.

Catherine Madden, an auto industry analyst said, “Although not all 75,000 workers will take the packages, the size of the offer reflects the pressure Ford Motor Co. is under right now. That's how significant the mounting pressures are on Ford."

Ford sales have gone down, amidst fierce competition from more fuel-efficient models by Asian automakers. The buybacks are aimed at helping Ford cut costs.

The UAW seems to have an apprehension of Ford's troubles, as it agreed to the packages saying that it did so due to the extraordinary circumstances in the domestic auto industry.

"Once again, our members are stepping up to make hard choices under difficult circumstances," UAW President Ron Gettelfinger said in the statement. "Now, its Ford Motor Co's responsibility to lead this company in a positive direction - which means using the skills, experience and dedication to quality that UAW members demonstrate every day in order to deliver quality vehicles to customers."