Ford Slashes N. American Manufacturing Costs

Ford Motor Co. says it has added 5,200 hourly jobs in North America this year. The company filled 400 positions by calling back laid-off employees.

The remaining 4,800 workers are new hires paid a starting hourly wage of less than $16 about $12 less than veteran workers earn. Ford plans to add 1,200 more jobs next year at its Flat Rock, Mich., assembly plant.

The lower pay for new hires was part of the company's 2007 contract with the United Auto Workers. But Ford hasn't been able to take advantage of the provision until this year because it had so many workers on layoff.

The company is now operating its factories at 114% capacity, the highest level in more than 30 years, according to Jim Tetreault, vice president of North American manufacturing. Total capacity is measured as two shifts per plant. Ford is operating above 100% because of overtime and third shifts at some facilities.

But the company has admitted that its plants are maxed out in part because it was slow to ramp up output for 2012. The resulting shortage of vehicles has crimped sales, shrinking Ford's U.S. market share thus far this year by 1.3 points to 15.5%.