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News > Companies
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Ford extends cost cutting
graphic December 3, 2001: 3:34 p.m. ET

Carmaker to halt matching 401(k) contributions, boost health-care premiums.
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  • GM, Ford November sales higher - Dec. 3, 2001
  • Ford said to prepare for job cuts - Dec. 2, 2001
  • Ford to give ex-CEO stock options - Nov. 15, 2001
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  • Ford
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    NEW YORK (CNN/Money) - Ford Motor Co. said Monday it will make several changes to employee benefits, including the suspension of matching contributions to the company's 401(k) plan, in an effort to cut costs. 

    Ford (F: down $1.14 to $17.80, Research, Estimates) officials said they also will eliminate the second shift at the Edison, N.J., assembly plant in February as part of an ongoing restructuring, and could lay off up to 600 hourly workers and 30 salaried employees.

    The move at the plant, which builds the Ford Ranger compact pickup truck, will reduce annual production by 84,000 units.

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    "These plant and benefit actions, while painful for our employees, are necessary as we confront a serious situation," Chairman and CEO Bill Ford said. "More tough decisions will follow in the months to come."

    Company officials estimated these changes will save the company about $300 million annually, after taxes.

    Check here for auto stocks.

    The 401(k) matching program will be suspended for an undetermined period beginning Jan. 1.

    In addition, the company will eliminate merit increases for about 2,200 top-level managers, and employees' health-care premiums and prescription drug co-pay will be increased in 2002. graphic

      RELATED STORIES

    GM, Ford November sales higher - Dec. 3, 2001

    Ford said to prepare for job cuts - Dec. 2, 2001

    Ford to give ex-CEO stock options - Nov. 15, 2001

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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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