Tuesday, 25 June, 2019

Ford's European business getting an overhaul and job cuts

JLR and Ford prepare for mass job cuts Ford to cut THOUSANDS of jobs across Europe in major shake-up
Ginger Lawrence | 12 January, 2019, 19:01

Asked whether the revamp could include plant closures in Europe, Armstrong said: "A review of the manufacturing footprint is part of this process".

Unite national officer Des Quinn said: 'What is being proposed at Bridgend is due to take place in two stages over two years. "We have had periods of profitability but not on the level it should be". This includes new nameplates and new versions of existing vehicles. "Building on last year's investment in their key plants in Solihull and Halewood to build the next generation of Land Rover models, including electric vehicles".

"I call companies like Ford. the squeezed middle", Urquhart says.

The manufacturer said it will also change its vehicle portfolio, expanding offerings and volumes in its most profitable growth vehicle segments whileimproving or exiting less profitable vehicle lines and addressing underperforming markets. Europe has been particularly tough for the company because of the key market in the United Kingdom, where the chaos surrounding Brexit has thrown up an additional challenge for the company. It's the latest sign of big changes in a global auto industry.

Jaguar Land Rover and Ford are preparing to implement cost cutting plans which will result in thousands of job losses for the UK's automotive sector.

Sales of cars in China dropped by 6%, to 22.7 million, during 2018, according to the China Passenger Car Association (CPCA) in the market's first decline for two decades.

Mr Armstrong said Ford was making "tough" decisions by undertaking a "complete review" of its European operations.

"Brexit is another factor, with businesses increasingly concerned about the prospect of a "no deal" Brexit, which would mean tighter border controls", he said.

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Ford's debt has been trading like it's speculative grade, and Moody's Investors Service cut the carmaker's credit rating to one step above junk in August.

At the time, Ford Executive Chairman Bill Ford Jr told reporters that talks with Volkswagen about an alliance were going "very well".

Ford declined to confirm the figures and said it was now consulting with unions. Audi, VW's biggest profit center, likewise noted more struggles ahead, reporting a 3.5 percent drop in sales previous year.

It is also undertaking a review of its joint venture in Russian Federation.

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. This year, performance will already be "significantly better" than 2018, Armstrong said.

"We are taking decisive action to transform the Ford business in Europe", Mr Armstrong said.

"We will migrate out of the MPV segment", Armstrong said, referring to the family vans segment.