Ford to cut thousands of auto jobs in Europe

13 January, 2019, 21:41 | Author: Eric Barnett
  • JLR and Ford prepare for mass job cuts

The US auto maker said it was starting consultations with union partners and stakeholders to create a "sustainably profitable business" in Europe.

Ford of Europe's central aim, Armstrong says, is to deliver a pre-tax operating profit of 6 percent for the longer term as a way of building a sustainable business that now employs 53,000 people across its 50 markets.

It will also review its operations in Russian Federation, and combine the headquarters of Ford UK and Ford Credit to a site in Dunton, Essex. This is forcing Ford and others to invest more heavily in alternative vehicles, like battery-electrics.

"Unite is positively engaging with Ford over its plans as we seek to safeguard jobs and look after the interests of all the company's employees in the UK".

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

Ford has already said it will cease production at a transmission plant in Bordeaux, France, and has started labor talks at the Saarlouis factory in Germany to end production of the C-MAX compact van.

The Society of Motor Manufacturers and Traders blamed weak demand for diesel cars, and said sales of vehicles overall would fall further this year on poor consumer confidence and Brexit.


With speculation swirling about the details of an nearly certain link up between Ford Motor Co. and Volkswagen AG, the company announced it plans to cut "thousands" of jobs in Europe in the near term.

Ford is also in talks with worker groups over the possibility of eliminating the production of two small minivan models now manufactured in Germany.

CEO Jim Hackett, who is under pressure from financial markets, hopes the initiatives will enable Ford to nearly double its operating margin to eight per cent by 2020, compared to 4.4 per cent in the third quarter of 2018.

Profits at Ford of Europe fell 82 percent previous year, in part due to the fall in the value of the pound as a result of uncertainty over Brexit.

'There are a number of factors behind this grim news - the main ones being challenging market conditions for car-makers generally, a lack of a coherent industrial strategy from the United Kingdom government and the uncertainty created by Brexit'.

Ford is in the midst of a massive, worldwide restructuring effort, and General Motors has also announced layoffs and plant closures in recent months. JLR is said to have been particularly vulnerable with the economic slowdown in China, the carmaker's biggest and most profitable market, and the slump in diesel sales and uncertainty over Brexit. The structural redesign also will include changes to Ford's vehicle portfolio, expanding offerings and volumes in its most profitable growth vehicle segments, while improving or exiting less profitable vehicle lines and addressing underperforming markets.

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