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Ford finds it needs return trip to its overheads

By John Reed in London

Published: May 22 2008 21:28 | Last updated: May 22 2008 21:28

When Ford Motor signed an agreement with the unions last year clearing its balance sheet of billions of dollars of employee healthcare costs, some analysts described it as a watershed moment for the financially troubled carmaker.

The deal, patterned on others already reached between General Motors and Chrysler and the United Auto Workers union, did much to cut the overhead costs that disadvantaged Ford’s cars relative to those produced at Japanese or other foreign non-union plants.

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