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Ford Restructuring To Cost 12,000 Jobs In Europe


06/27/2019


Ford Restructuring To Cost 12,000 Jobs In Europe
United States based global car company Ford would be cutting down on about 12,000 jobs in its European operations as a part of its efforts to streamline operations in the region and to enhance its profitability, the auto company announced recently.
 
The company is on a restructuring process for its business globally as a part of a wider strategy of staging a turnaround. As a part of that strategy, Ford has already announced the closure of six of its manufacturing factories in Europe and the latest job cut announcement are part of its streamlining and cost reduction strategy for Europe. Ford wants to reduce the number of its manufacturing units in Europe to 18. The company has also announced the reorganization of its business into three divisions only. The commercial vehicles, passenger cars and imports of Ford models such as the Mustang are the only three business divisions of the company.
 
The company would be putting top use voluntary separation programs through till the end of 2020 for the elimination of most of the positions in Europe as announced by the company, said Ford about its decision of job cuts in Europe. The Dearborn, Michigan, US based company has said that about 2,000 of the 12,000 job cuts this time would be those of salaried positions which is a part of the plans of the company to cut down on about 7,000 white collar jobs. All of these job cuts are part of the global strategy of restructuring being implemented by the company.
 
"Separating employees and closing plants are the hardest decisions we make," said Ford of Europe President Stuart Rowley. The company was "providing support to ease the impact," he added.
 
The company is has created a strategy that would make the company more focused and profitable, said Ford of Europe, which has its headquarters in Cologne, Germany. The company is hopeful that it would be able to "significantly improve" its financial results in Europe, it said, by following a strategy of sustained profitability and a long term strategy of achieving operating margins of 6 per cent.
 
The entire auto industry, including the Ford and other large global auto makers, is under pressure because of multiple challenges. Such challenges include the need for auto companies to develop capacity and technology for electric cars which is pretty expensive. Additionally, the companies also need to develop adequate technology for the conventional vehicles for them to meet the new emission rules in Europe as well as meet the Chinese regulations that have been created to put on the road as many vehicles on alternative energy as possible. The companies therefore require strong profits to finance those investments.
 
An electric variant such as a battery or battery-internal combustion hybrid, would be available for all of its new vehicles, Ford of Europe said, and added that a future family of electric vehicles in Europe would also be built by it.
 
Closure for its Bridgend engine plant in Wales, a transmission plant in France, and three plants in Russia, has already been announced by the company.
 
(Source:www.livemint.com)


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