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3. Ford pays off its workers

What happened?
This past week, Ford announced that 38,000 workers have accepted buyout offers, for an overall workforce reduction of 46%. The plan should save the company some much-needed cash, but the question remains: How much more does Ford need?

What does this mean for your portfolio?
This move gives the company much more agility to enable a vast restructuring. If the company can properly adapt to future trends in the auto industry, Ford will bounce right back on track. And according to figures from the December 2006 issue of the Institute of Electrical and Electronics Engineers Spectrum magazine, Ford Motor is leading the world in R&D in terms of dollars spent.

Investors can hope that this effort will produce something better than the Ford Fiesta in years to come.
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I almost bought a Ford Fiesta back in the 70's. It was a lot of fun to drive with the!

There are surely a lot of interesting vehicles coming over the next few years...including small vehicles.

It really seems hard to believe that Ford is outspending everyone on R&D though.

On a related note, it's going to be quite interesting in the auto markets over the next few years. Different automakers are taking different approaches to engine development to optimize power, performance and investment. I don't know who's going to win...but good 'ol Ford appears to be going it's own way...and in my opinion, it's not a bad approach. You'll start to see it for 2009MY.

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The 38,000 workers that have accepted the buyout
is a good thing for the company to save money,
but I do not think that the this is the end of it.
I expect to see more buyout in the future

The Eternal Bird
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