Ford to offer redundancy to over 75,000 workers

Ford will offer buyout packages of up to £74,000 to all of the more than 75,000 workers at its US plants, the United Auto Workers union said as the automaker details a revised turnaround plan in response to slumping sales. Meanwhile, two top Ford executives, including Americas chief operating officer Anne Stevens, stepped down, just over a week after Alan Mulally took over as chief executive officer of the struggling automaker.

Ford shares closed down more than one per cent, after trimming earlier losses triggered by a report that the automaker's own forecasts pointed to a loss of up to $9 billion this year. In January, Ford had said it would cut up to 30,000 jobs and close 14 plants by 2012, but then said in July that slowing sales of its once highly profitable line of pickup trucks and SUVs had prompted it to move faster.

The number of workers the automaker will cut from its payroll in coming months will hinge on its success in attracting workers with the new round of buyout offers, which were modelled on a package offered by larger rival General Motors Corp.

"The pressure for Ford to accelerate its current restructuring efforts has reached a crescendo," said Merrill Lynch analyst John Murphy, who has a neutral rating on Ford.