Ford Gets $240 Million from Taxpayers, Then Lays Off 7,000 Workers

Ford has announced that the company will cut 7,000 positions globally.The layoffs began on May 20, when 800 local employees lost their jobs.

The plan was presented by Ford CEO James Hackett, who said that the cuts were necessary due to sagging profits. However, the company made $3.8 billion in 2018. In the same year, Hackett himself received a raise,†taking home†nearly $18 million.

Not only that, the automaker saved an estimated†$208 million in just the first quarter of 2018 as a result of the corporate tax cuts put through by Trump and his GOP buddies.

And whatís especially galling is that just a few months ago the company received $240 million in tax incentives from Michigan and Detroit officials — money to be used for the relocation of its autonomous vehicle division from Dearborn to Corktown.†

Metro News highlights this injustice:

Ford has $17 billion in the bank while Detroit had $593 million in savings at the end of 2017 and struggles to pay for basic services. With the layoffs, Ford will save $1.2 billion by the time itís done renovating the Michigan Central Depot.

The 7,000 jobs represent about 10 percent of Fordís staff across the globe. Overall, about†2,400 of these layoffs are in North America.†

So how does Ford explain these job cuts? In his letter to employees, CEO James Hackett stated that the automaker is trying to save money, as well as cut the bureaucracy within the company.†

This is all part of a program†that began last year, in which Ford committed to spending $11 billion on a massive restructuring. The company seeks to boost overseas sales and move into the 21st century by developing more electric and self-driving cars.

But, according to†CNN:

Ford has been slow to give details of how it will spend the $11 billion and what jobs might be cut as part of the restructuring of the business. It has said it will close three plants in Russia, one factory in Europe and another in Brazil.

This statement by Ford comes after General Motors, another Detroit automaker, announced its decision just months ago to eliminate about 8,000 non-union jobs — or about 15 percent of its contract and salaried workers.

At the same time, GM closed five North American factories. One of these was the Detroit-Hamtramck Assembly Plant, for which GM had been awarded hundreds of millions of dollars in the 1980s, but never actually created all the jobs it had committed to.

Metro Times received a†statement from Ford,†explaining that the company is ďundergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business.Ē

There is a pattern here.†

The rich grow richer, while the poor get poorer. Werenít Trumpís tax cuts for the rich supposed to trickle down to benefit everyone — including the workers? So why didnít that happen at Ford? What was that about making America great again?

Instead we have massive layoffs at Ford and GM, while numerous stores across the U.S., such as Sears and Payless, are being shuttered.

While Fordís CEO makes his annual $18 million, thousands of the companyís workers†will receive no paycheck at all. This pretty much reflects the†state†of the U.S., where the income gap between the rich and everyone else has been†growing wider for more than 30 years.

In 2017, the richest 0.1 percent took in 188 times as much as the bottom 90 percent.Trumpís tax cuts are exacerbating that inequality. Workers are left to fend for themselves, while the rich help each other out.

Maybe Michigan wonít vote for Trump in 2020.

Photo Credit: Mike Mozart/Flickr

58 comments

Caitlin L
Caitlin L4 days ago

tyfs

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Jan S
Sara S14 days ago

thank you for posting

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Lindi Smith
Lindi S17 days ago

See how that works? E V I L in your face!

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Dr. Jan Hill
Dr. Jan H17 days ago

It's called capitalism!

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Veronica Danie
Veronica Danie17 days ago

Thank you so very much.

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Veronica Danie
Veronica Danie17 days ago

Thank you so very much.

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Veronica Danie
Veronica Danie17 days ago

Thank you so very much.

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Gene Jacobson
Gene Jacobson17 days ago

Everyone knew this would be the result of the tax scam after it's first reading. It was never intended to benefit anyone but the 1% and corporations who share their wealth with them. @gerald quite disingenuous, you know republicans, the wealthy and huge corporations are so interconnected that they couldn't be separated so that comment is not only inane, it is irresponsibly misleading.

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gerald s
gerald s18 days ago

There is no connection between Ford and Trump. Trump does what he feels is best for America and Ford does what it feels is best for Ford. Both are correct.

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Kathy K
Kathy K18 days ago

The American way. I'm sure rumpus would approve.

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