Ford Cutting 7,000 Global Jobs As Part Of Restructuring Plan
The Ford Motor Company announced this morning. It's cutting seven thousand salary jobs worldwide about ten percent of its white collar employees. It's all part of a big multi year restructuring program that CEO, Jim Hackett has embarked upon, you might remember, though, that Ford made it through the financial crisis, without the bankruptcy filings, the GM, and Chrysler had to make in the f one fifty pickup truck has been bestseller and huge profit maker for decades now. But as marketplace's Jack Stewart reports Ford, along with all the other car companies is gearing up. Very more challenging future. The also industry is anticipating some major technological disruption to its business, but as part of planning for that Michelle Krebs had also try to says companies have to keep doing what that doing. I don't make your absolutely cannot take their eyes off the ball of today's business because that is what is creating the funding to finance this future, that we don't know, when it's going to happen that future for Ford, which wants to be a mobility company means getting into all sorts of things from bike sharing programs to self-driving robo taxis uncertainty, though, is always haunts plan for says Stephanie Brindley analyst at IHS market. You're saying it in some of the financial results. You're seeing it in different cost-cutting programs at different automakers for it's not alone in trying to balance this at all companies worry that one day, people may choose not to own a vehicle, and just use a map like Uber or lift, which with tens of billions of dollars robo tank sees could hasten that shift even more GM boats and autonomous startup cruise for a reported Hoffa billion tech companies with deep pockets like Google's parents alphabet have their own self driving. I'm visions Sam Vieira ni. Out consultants auto focus solutions says Ford is investing to, I would say they they're doing very good job of it. They're just not promoting it yet, but they are moving forward and looking forward to the next era in the automotive industry, and all it's really clear about that next era is that it's going to need as much money as possible to competion, even if that means cuts today. I'm Jack shoe for marketplace. Morgan Stanley is today's bearer of ill economic tidings in a report out this morning. The banks analysts said that, if the trade war between the United States and China keeps up and the president's threatened tariff increases on more Chinese imports come to pass a global recession is within the realm of possibility. So the question now it seems is whether President Trump's approach to trade negotiations is working as he intended cleared Williams was still not too long ago. A White House trade policy official miss Williams. Thanks for coming on. Thanks. Thanks for having me. So for those who don't follow trade, perhaps as closely as. Well as you and I do gimme the gimme like the thirty second elevator pitch version of President Trump's trade agenda. Sure. Well, what President Trump is trying to do is get his arms around a set of long-standing unfair trade practices. That's been going around and the global community. I think the, the most prominent example of that is what's happening with China. Obviously, he's expressed concerns with, you know, the NAFTA agreement with elements of the World Trade Organization. And I think in general with sort of a lack of equitable treatment when it comes to tariffs around the world, do you think, though that the president's tariff policies are the way to get done what he wants it seems that it's very spur of the moment, shall we say now? Well, I actually think since the president has been in office, what he has tried to do is to take tariff action in many cases as a means of leverage, you know, not all tariffs are created equal, as they say. So I mean I could go through. One by one in China. It's really a means to an end fair enough. And, and look, it's only a half hour program. I appreciate you. You know go through the harmonized tariff schedule. But let me ask you a more fundamental question, and it's going to sound like I'm poking the president in the eye, and I'm really not do you think he understands the way tariff works, because if you look at his public pronouncements his tweets virtually everything he says, about tariffs would seem to indicate he just doesn't understand how they work. It's not the Chinese are paying. It's not that there are billions coming in, in the United States from overseas. It's American consumers who are paying these tariffs and the president discounts that at every turn. I think the tariff question actually is, is somewhat of a complex one. Now, I will be the first to grant you the tariffs do have somewhat of a negative impact on the US Konami and on consumers. They can have an impact on businesses who need to get those, those products from abroad. I mean, I'm not a tariff guy all of that said, you know, who pays the tariff in any particular instance is not as simple as, oh, it's all China or it's all the US consumer. And what we've found is we've analyzed it is that it's really different in, in each instance, I'm sure I don't need to say for the academic research that shows in the section to thirty two and three hundred tariff cases that the president has imposed on the Chinese. It is literally American consumers who were paying sometimes inaccessable one hundred percent of the tariffs and more to the point though. With all respect, you didn't answer the question, does the president understand how tariffs work, I think that he does. And again, I, I, I would paint the three one in the two thirty two with, with different brush. I think when the administration put in place, three thrill one Tara. Chiefs. They were expressly designed to pick products that the US could source from other places and you actually do see some of that happening on steel. I, I would grant you that different situation. And I think that the steel tariffs were more controversial within the administration itself for that reason. I'm not sure exactly when you left the administration must Wilms but, but the last you heard from folks inside the White House. What is your sense of the president's sense of urgency on fixing and, and getting to a deal with the Chinese, and, and does it carry into the twenty twenty campaign cycle farther? I left the White House about a month ago. April nineteenth with my was my last day. I went and actually got to see the president a couple of weeks after that, I think that with respect to China that the president is willing to keep at the current strategy as long as it takes to ensure that China starts playing by the rules. I think if you look what you're hearing from the hill, you see Democrats and Republicans alike, all saying, stay tough on China, make sure you get structural reforms in China where you're getting feedback are things on steel and aluminum and saying, we need to work with the allies more. So, look, I hear ya on what he is hearing from the hill. And from people inside the boat way writ, large, but every single farmer we talked to and virtually every single small business person with truly just one or two exceptions in the last year and a half has said these tariffs are killing us. Right. No. There's no question that there is going to be some pressure from the business community. I've been surprised actually that, that the, the business community for the most part has stayed firm with the president and said, you need to, you need to be tough on China because they're hurting my business. A lot of the pain that the agriculture community has been feeling in the past has been on the retaliation, the restrictions trying to deal with that. But if we can get the commitments from China, and the market access from China, it's going to be a much better situation. Clear Williams, former deputy director for international policy, the National Economic Council, the White House on his way through job in the private sector Williams, thanks very much for your time. I appreciate it, sir. It's my pleasure.