By human standards it’s a colossal number – and in fact, the entire profit Ford has made in this decade. The company says the cost of reinventing itself—shutting down plants, dismissing workers and paying for their ongoing healthcare costs and pensions—will top out at about $11.2 billion.
The Wall Street Journal adds that almost $10 billion of that will be written down in the first quarter of this year. The big chunk of the pricetag, about $6 billion, will go toward paying laid-off workers and buyout packages. Another $2.74 billion will go to pension charges.
Ford is cutting 38,000 jobs and shutting down plants, as it attempts to return to profit by 2009. Last year the company lost $12.6 billion.
Ford Overhaul to Total $11.2 Billion--Wall Street Journal