The Detroit News reported today that the car manufacturing company has announced its plans to cut its workforce with more that 2000 employees, or about 12 percent of the actual value. The decision is caused by the increasing prices for both materials and gas.

Ford’s board of directors plans to keep the restructuring process on tracks, and this seems the only way to reduce costs enough to accomplish this. The company was already passing through a bad period of time and announced that its plan to become profitable again by 2009 is impossible to fulfill under the actual conditions. A reason for this is the fact that the market has shown a stronger demand for cars instead of trucks and SUVs, which were the card that Ford betted on

And if this were not bad enough news for the car manufacturing company’s employees, Ford announced that it considers making cuts in wages as well. The company said that the actual percent is not yet figured out, but it is possible that it will be made public somewhere in July.

Ford is the world’s third largest car manufacturing company owning the Swedish brand Volvo as well as one third of Mazda. However, in March 2008, it had to sell Jaguar and Land Rover to the Indian Tata Motors.

The car manufacturing company is not the only one having problems because of the oil price. American Axel & Manufacturing’s Detroit workers have been on strike for several months as a response to the company’s decision to severely cut down their wages in an attempt to remain competitive on the market. The strike had also affected General Motors, whose main source of components is American Axel.