Ford Europe to Slash Thousands of Jobs in Turnaround Plan

JLR and Ford prepare for mass job cuts

JLR and Ford prepare for mass job cuts

The plan, part of a £14bn (Rs 125,929 crore) global cost-cutting programme, is described as "decisive action to transform the Ford business" by Ford president Steven Armstrong.

Ford is to lay off 1,000 workers at its engine plant in Bridgend as the thousands of job cuts across Europe warned of by its American parent begin to bite.

Ford's $14 billion global cost-saving plans includes exiting the minivan segment, stopping manufacturing of automatic transmissions in Bordeaux in August, reconsidering its operations in Russian Federation, and combining the headquarters of Ford U.K. and Ford Credit to a site in Dunton, Essex.

Exact details are yet to be outlined and Ford, which sold nearly 7mln cars around the world in 2017, said it would talk to unions about reducing costs.

Passenger Vehicles: Ford will establish a more targeted portfolio of European-built passenger vehicles focused on the quality, technology-rich and fun-to-drive DNA of the Ford brand, with the goal of building emotional connections with customers through sporty and progressive designs. A Ford spokesman said the carmaker now assumes that any Brexit deal would keep tariff-free trade between Britain and Europe.

The plans are for two phases of cuts at Bridgend, achieved by 2021/21, sources said.

Armstrong said on a call that the future of the European operations lies in crossover vehicles and SUVs, and that sedans and compact vans are in decline. The company said it will launch a strategic review of its Ford Sollers venture that is based in Russian Federation, with a number of restructuring options available.

The auto company announced plans on Thursday to cut thousands of jobs across Europe.

Speaking to Reuters this week, Ford's president of global markets, Jim Farley, said he had no news to share with reporters about the status of talks with VW, but said that they are "progressing well".

It is not clear how many jobs the vehicle giant is planning on cutting.

Ford is in the midst of a massive, worldwide restructuring effort, and General Motors has also announced layoffs and plant closures in recent months.

Jaguar Land Rover will cut over 10 percent of its workforce, while Ford Europe undergoes similar cuts.

Ford of Europe will slash its workforce to improve its short-term profitability after losing US$199 million ($277 million) during the first three quarters of 2018.

"We are continuing to invest in the business, especially in electrified cars", said Armstrong. The European Union has set lower limits for vehicle carbon dioxide emissions from 2021 that are pushing carmakers to include more electric vehicles in their future sales mix. It added that it would leverage relationships, including a potential alliance with Volkswagen AG already announced last summer, to support commercial vehicle growth.

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