DETROIT, Nov. 27 (UPI) -- Ford Motor Co. has dropped more than 100 temporary employment agencies that supplied contract workers who perform everything from secretarial jobs to engineering.
The Detroit Free Press Tuesday said about 1,000 of Ford's 5,000 to 6,000 contract workers will have to join another contract labor firm or leave their jobs at Ford.
"We regret this action had to be taken, but we are taking a number of difficult positions that are affecting our employees, our shareholders and now our suppliers," spokeswoman Della DiPitero told the newspaper.
Ford notified its contract labor suppliers of its cost-cutting plans earlier this month. The world's second-largest automaker has lost $1.4 billion since March and is laying off 4,000 to 5,000 white-collar workers, about 10 percent of its salaried work force, to save billions and return to profitability.
The decision is a boon to MSX International, a $1.1 billion contract labor firm headquartered suburban Detroit firm that handles contract-labor hiring for Ford and its former parts operation Visteon, but is disaster for the smaller contract labor firms being dropped.
Both Ford and Visteon had imposed a 7 percent cut in the rate they pay contract labor firms.
Nick Scheele, Ford's new chief operating officer, Monday night unveiled the 2003 Lincoln Town Car at Henry Ford's historic Fairlane estate in Dearborn, Mich.
The all-new Town Car returns to a more formal, traditional design to appeal to the demographics of the typical Lincoln buyer -- who averages 70 years of age. Ford's 1998 effort to make the current generation Town Car more contemporary to appeal to younger buyers alienated loyal core customers who liked the stately $40,000 to $50,000 flagship sedan the way it was.
Although 60 percent of Lincoln Town Car owners are repeat buyers, overall Lincoln sales have dropped 15 percent in 2001. Nearly 40 percent of the luxury sedans are used as limousines.
"We'll go after the faster-growing segments of the luxury marker but we will continue to invest in Town Car because it remains such a viable car for customers, dealers and Lincoln," said spokesman Jim Cain.
Ford plans to introduce the all-new 2003 Lincoln Aviator, mid-sized sport-utility vehicle at the New York Auto Show in March.
