Categories Consumer

Ford announces restructuring in Europe with job cuts and factory closures

Ford Motor Company (NYSE: F) has announced a new restructuring plan in Europe in order to improve efficiency and profitability, but the decision will involve job cuts and factory closures at several of its locations across the region.

As part of the restructuring, the company has created three new business groups – Commercial Vehicles (CVs), Passenger Vehicles (PVs) and Imports. The Commercial Vehicles group will be led by general manager Hans Schep and the Passenger Vehicles group by general manager Roelant de Waard.

Ford plans to broaden its presence in the pickup segment and to double its profits in CVs over the next five years in Europe through its partnership with Volkswagen and its JVs in Turkey and Russia. The PV group will focus on European-built cars and SUVs. Ford intends to more than triple passenger vehicle imports into Europe annually by 2024 through its Imports group.

Ford is looking to expand its vehicle line-up in Europe by rolling out at least three new nameplates in the next five years as it builds its utility vehicle portfolio. Like its peers, Ford faces challenges of investing in electric and autonomous vehicles while adhering to strict emissions regulations in Europe.

The restructuring plan includes the closure or sale of six assembly and manufacturing plants by the end of 2020 in locations such as Wales, France, Russia and Slovakia. Through these actions, Ford’s European manufacturing operations will be reduced to 18 facilities by the end of next year from 24 at the start of 2019.

The company has also cut shifts at two of its plants in Germany and Spain. These actions will affect around 12,000 jobs in total at Ford’s European facilities and JVs by the end of 2020, mainly through voluntary separation programs. Around 2,000 of these are salaried positions, included among the 7,000 salaried positions Ford is reducing globally.

Ford’s shares were up 2.6% in mid-day trade on Thursday.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top