Ford cutting 12K jobs, axing 6 plants in Europe

[jpd80]

June 27, 2019 07:18 AM updated 5 hours ago
Ford to slash 12,000 jobs in Europe by 2020
EDWARD TAYLOR
Reuters

https://www.autonews.com/automakers-...bs-europe-2020

FRANKFURT -- Ford Motor Co. said it will have cut 12,000 jobs in Europe -- about 20 percent of its overall workforce there -- by the end of next year to try to return the business to profit, part of a wave of cost reductions in an auto industry facing stagnant demand and record-level investments to build low emission cars.

Ford said it has ceased production at three plants in Russia, is closing plants in France and Wales, and has cut shifts at factories in Valencia, Spain and Saarlouis, Germany. The cuts will reduce its manufacturing footprint in Europe from 24 plants down to 18.

Approximately 12,000 jobs will be impacted at Ford’s wholly owned facilities and consolidated joint ventures in Europe by the end of 2020, primarily through voluntary separation programs, the automaker said in a statement released on Thursday.

The challenge of investing in electric, hybrid and autonomous vehicles -- while having to overhaul combustion engines to meet new clean-air rules -- has forced Europe's carmakers to slash fixed costs and streamline their model portfolios.

"We have largely concluded consultations with social partners regarding restructuring actions," Stuart Rowley, president, Ford of Europe told Reuters.

Around 2,000 of the jobs to be cut are salaried positions, which are included among the 7,000 salaried positions Ford is reducing globally, the carmaker said. The rest are workers on hourly contracts or agency workers.

Ford Europe has 51,000 employees in Europe or 65,000 when joint ventures are included.

In January Ford announced a sweeping business review that included the prospect of plant closures and discontinuing loss-making vehicle lines to pursue a 6 percent operating margin in Europe.

Falling demand

Demand for cars in Europe is falling. The European automobile manufacturers' association ACEA on Thursday predicted that European passenger car registrations will shrink by 1 percent in 2019 to 15 million cars, revising its previous forecast of 1 percent growth.

Car sales will stagnate or decline in the next three years, AlixPartners said in a survey of the industry published this week. Manufacturers balancing sales of electric and combustion engined cars will see margins hit particularly hard, the survey said.

Ford said it intended to double the profitability of its commercial vehicle business in Europe in the next five years, supported by a restructured Ford Sollers joint venture in Russia and a strategic alliance with Volkswagen Group.

Earlier this year Ford said it would seek to exit the multivan segment and focus on developing electrified versions of more profitable "crossover" and SUVs.

European passenger vehicle development, including for battery electric vehicles, will be centered in Cologne, the carmaker said.

Ford also said it expected to triple passenger car imports into Europe by 2024 by selling Mustang and Explorer vehicles, including a Mustang-inspired electric car in late 2020.

Bloomberg contributed to this report.

[4vxc]

" Mustang inspired electric car"
There's something not right about those words used together

[FoxtrotGolfXray 5.0]

Originally Posted by 4vxc

" Mustang inspired electric car"
There's something not right about those words used together

I'm the opposite. I think electric vehicles are the future (whether we personally like it or not) and having a vehicle with the sporty lines of a Mustang in an electric vehicle seems like something to look forward to.

[marty351]

Originally Posted by psychobimbo

I'm the opposite. I think electric vehicles are the future (whether we personally like it or not) and having a vehicle with the sporty lines of a Mustang in an electric vehicle seems like something to look forward to.

Only with nuclear powerplants.

[DJR-351]

Originally Posted by psychobimbo

I'm the opposite. I think electric vehicles are the future (whether we personally like it or not) and having a vehicle with the sporty lines of a Mustang in an electric vehicle seems like something to look forward to.

And i'm the opposite to you i would rather kill the Mustang name than have it electric, it certainly would not be something i would look forward to, inevitable or not......it would be an affront to my senses, an abomination.....

[jpd80]

Originally Posted by DJR-351

And i'm the opposite to you i would rather kill the Mustang name than have it electric, it certainly would not be something i would look forward to, inevitable or not......it would be an affront to my senses, an abomination.....

Unfortunately, you're basing that off an uninformed opinion of what's actually planned,
I think you'll be surprised and delighted with what actually happens, especially next year...

[DJR-351]

Originally Posted by jpd80

Unfortunately, you're basing that off an uninformed opinion of what's actually planned,
I think you'll be surprised and delighted with what actually happens, especially next year...

I seriously doubt that, i know what i like and i prefer my muscle cars rockin with big blocks, big carbies, noisy as hell and the absolute minimum in electronics......i'm well and truly entrenched in the past on this subject.....

[marty351]

Originally Posted by 4vxc

" Mustang inspired electric car"
There's something not right about those words used together

Name it the kmav and all will be alright.

[jpd80]

New Mustang variant next year, coyote v8 with hybrid.....

Model E is Mustang inspired crossover with Tesla like performance.

[Syndrome]

Ford is on the nose not just in Australia.

[kmav23]

Ford will now only make SUVs and Pickup trucks as they could not compete with the Japanese and Koreans on passenger cars.

They have to make the right investments and partnerships in the transition to electric and automated vehicles.

Investing 500 million along with Amazon into Rivian electric pickup truck company is a start.

[roKWiz]

Originally Posted by kmav23

Ford will now only make SUVs and trucks .

What trucks ?

[jpd80]

Originally Posted by roKWiz

What trucks ?

F Series, E Series cab chassis, F53 Bus, Ford Cargo heavy Trucks, Transit, Ranger

[roKWiz]

Originally Posted by jpd80

F Series, E Series cab chassis, F53 Bus, Ford Cargo heavy Trucks, Transit, Ranger

F's and E's aren't available here, nor the bus or Cargo.

Why do some here consider a Ranger a truck, it ain't.
When It can carry more than 1 tonne on its tray/tub I'll consider it a TRUCK until then it's just an overpriced ute with no payload space.

PS I note Kmav edited his truck comment later.

[jpd80]

Originally Posted by roKWiz

F's and E's aren't available here, nor the bus or Cargo. .

Ford makes them whether we get them or not, they pay the bills for everything else
cause god knows, nothing else does....

[hayseed]

Originally Posted by roKWiz

What trucks ?

Ford have just released a New Heavy truck that Won Truck of the Year in Europe..


https://www.fordtrucks.com.tr/Home/Index?url=en%2Fhome

[GasoLane]

Originally Posted by hayseed

Ford have just released a New Heavy truck that Won Truck of the Year in Europe..


https://www.fordtrucks.com.tr/Home/Index?url=en%2Fhome

I didn't realise that Ford were building Volvo's!

Lets hope they put them together better than the ones that rokwiz is restoring.

[roKWiz]

Originally Posted by GasOLane

I didn't realise that Ford were building Volvo's!
Lets hope they put them together better than the ones that rokwiz is restoring.

GasOLane, I'm not sure whether that was a compliment or an insult.

[Wretched]

Originally Posted by kmav23

Ford will now only make SUVs and Pickup trucks as they could not compete with the Japanese and Koreans on passenger cars.

They have to make the right investments and partnerships in the transition to electric and automated vehicles.

Investing 500 million along with Amazon into Rivian electric pickup truck company is a start.

It is not just the Japanese or Koreans they are worried about, just like Toyota have well documented it, car makers fear the generation Facebook and companies like Facebook.

These generations + gig companies like Facebook are changing the way people look at cars and how people get around. Toyota are fearful of being made "redundant."

As an admirer of cars I too also fear the one size will fit all mentality that is really being pushed by a few.

[In Focus]

I bet a lot of people, both inside and outside of Ford, cringed at the mention of "agile structure".

[Syndrome]

Originally Posted by In Focus

I bet a lot of people, both inside and outside of Ford, cringed at the mention of "agile structure".

I am surprised they didn't use the term 'rightsizing'.

[Sprintey]

"increases synergies" = we fired a lot of people

[jpd80]

Originally Posted by Sprintey

"increases synergies" = we fired a lot of people

Europe is a giant cluster F, they spent years maximizing Fiesta and Focus sales,
making lots and lots of cars and MPVs that just can't cover their own replacement costs.
Worse than that, they dictate what products we get, and if there's are shyte, there's bugger all
chance they will work over here. The money wasted on One Ford proves to me just how lost Ford is.

[DJR-351]

Originally Posted by jpd80

Europe is a giant cluster F, they spent years maximizing Fiesta and Focus sales,
making lots and lots of cars and MPVs that just can't cover their own replacement costs.
Worse than that, they dictate what products we get, and if there's are shyte, there's bugger all
chance they will work over here. The money wasted on One Ford proves to me just how lost Ford is.

Wish i had a dollar for everytime i've heard a variation of this statement....

[janddbone]

OneFord right idea, poor implementation at the wrong level.