Friday, September 15, 2006

Ford Inches Closer to the Drain

Wow it seems that US carmakers just can't compete with the Japanese. Ford looks like they are really restructuring their operations in a big way:

The company announced it would cut 10,000 more white-collar positions
in addition to offering buyout and early retirement packages to all of its
75,000 hourly employees. It also suspended its dividend.

That last bit is what I would be wary of if I was an investor in F stock. It is always a bad sign when a company pulls its dividend. Even if they have to save money that is a bad sign IMO.

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