Ford the second-largest U.S. automaker, has added about 5,200 jobs this year in its U.S. factories, and its North American plants are operating at 114 percent of capacity, the highest in more than three decades.
“Our manufacturing costs have gone down this year,” Jim Tetreault, Ford’s vice president of North American manufacturing, told reporters today at a factory in Wayne, Michigan. “Two things are driving that, capacity utilization and entry-level workers. No question, those two things have lowered our costs.”
Ford’s contract with the United Auto Workers allows the automaker to pay new hires about $16 an hour, less than 60 percent of what veteran workers receive. Ford has added about 4,800 of those entry-level workers to its payroll this year, said Todd Nissen, a company spokesman. The remainder of the new jobs went to workers transferring from other Ford factories or coming out of the “jobs bank” of employees who didn’t have job assignments. Ford’s jobs bank is now empty, Tetreault said.
Ford’s is running its factories at their highest level of utilization in Tetreault’s career at the automaker, which spans more than 30 years, he said. Dearborn, Michigan-based Ford has added third shifts of workers at five North American assembly plants
I live next to Ford Dearborn and went there for a job recently and was told they are not hiring. If they are hiring, it is INSIDE only. That means the people that work there are pulling in their family and friends quietly although I have not heard this to be the case from people that work there now. I am suspicious of this story.
"Dearborn, Michigan-based Ford has added third shifts of workers at five North American assembly plants"
Moe, How is that possible? Didn't someone write a third shift wasn't possible due to maintenance requirements? [wink]
Now we just need Europe to get its head out. Imagine EPS if we couple current North American profits we Europe break even of just a couple years ago. Hummmmmmdinger. It will happen...maybe in line with the huge Ford expansion in China currently in the works. Growth there finally starting to show itself. July sales growth YOY 32%, August 39%, September 35%, October 48%. Of course October influenced by China/Japan spat but the growth shoots have emerged. Next two years will be big growth.
Sentiment: Strong Buy