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.



Inventory and Processor Supply Issues Weigh Against Holiday PC Shipments
Lastly, Apple retained the same fourth position with year-on-year growth of -3.8 percent, and Acer obtained the fifth position. According to the market research company, worldwide PC shipments reached 68.1 million in Q4, a 3.7% decline year-on-year.

Velvet Buzzsaw Trailer Teases Netflix’s Star Studded Horror Flick
Velvet Buzzsaw aims to do the same within the world of fine art. Velvet Buzzsaw's tagline reads: "All art is risky ". Velvet Buzzsaw hits Netflix on February 1.

Stunning TVs From CES 2019 You'll Want in Your Living Room
Expect imitators, and hope we see some affordable versions of the technology down the line, however long it takes. The new TV was unveiled at the Consumer Electronics Show (CES) now ongoing in Las Vegas .

Barcelona transfer target Willian provides update on his Chelsea future
In my opinion, Willian has to stay with us because for us he is really a very important player, like Pedro ". Sarri was also quizzed on the future of Willian , who has been linked with a January move to Barcelona.

British PM warns of "catastrophe" in last minute plea for Brexit deal
It was previously thought only ministers could extend the two-year Article 50 process which, which governs how a member state leaves the EU.

Those With High Fiber Diets Have Lower Death, Disease Risks
These high fiber consumers also had "significantly" lower body weight, blood pressure and total cholesterol, the authors found. But it adds that for people with an iron deficiency, high levels of whole grains can further reduce iron levels.

Tennis match-fixing investigation: Spain arrests 15 people
Each player's match was attended by a member of the Armenian ring, who made sure the player complied with the agreement. Authorities said the players tainted results after taking bribes from an Armenian ring that was dismantled in October.

PA slams Israeli "apartheid road" in West Bank
The Palestinian Authority said in a statement that the road posed a challenge to "the credibility of the worldwide community". Segregated roads are common in the West bank, but until now, none are divided along their entire length by a wall.

The key issues Meghan Markle wants to champion as a royal
Meghan , Duchess of Sussex puts a bracelet on Patsy Wardally during her visit to charity styling centre, Smart Works . The Queen held the roles at the National Theatre and Commonwealth Universities for 45 and 33 years respectively.

Detroit Pistons star Blake Griffin gets standing ovation in return to LA
Asked if he would ever shake Ballmer's hand, Griffin bristled, saying, "I am not here to answer hypothetical questions". It's pretty clear that there are still some hard feelings from Blake Griffin toward the Los Angeles Clippers .