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Stocks F / Ford Motor Company

URL:  http://boards.fool.com/very-good-discussion-problem-here-as-i-see-it-16729484.aspx

Subject:  Re: Unions in the 21st Centery Date:  2/15/2002  8:27 AM
Author:  jvancil Number:  7548 of 18221

Very good discussion!

Problem here (as I see it) is that we are working on supposition and guess! We would really need access to a lot of information from Ford in order to come up with the answer. Let me speak to something I do understand, though. I am with a manufacturing concern, and our direct labor as a percent of SALES (shipments) was ~ 14% last year. Indirect labor was ~ 4%. At $30,000 per car, applied to Ford that would be $4200 for direct and $1200 for indirect. And keep in mind that this is before any of the SG&A...

Our net profit goal is about 7%... I do not know what Ford's is... or what their actual net was... but I can tell you that they are probably a good deal more efficient than we ar with regards to labor... but they have huge technology and machinery costs to replace that labor efficien