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Ford Europe to slash thousands of jobs in turnaround plan POST Online Media

Ford Europe to slash thousands of jobs in turnaround plan

Staff Writer | Thursday January 10, 2019 6:37AM ET
Ford Europe
Europe   Ford aims to achieve the labor cost reductions

Ford is starting consultations with its union partners and other key stakeholders to implement a comprehensive transformation strategy aimed at strengthening the Ford brand and creating a sustainably profitable business in Europe.


The strategy will offer differentiated vehicles designed to create a deeper connection with Ford customers.

Near term, Ford is accelerating key fitness actions and reducing structural costs.

In parallel, the fundamental redesign 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.

Structural cost improvements will be supported by reduction of surplus labor across all functions – salaried and hourly.

An improvement in management structure, announced in December, already is underway through Ford’s redesign of its global salaried workforce, that will improve the agility of the organization.

Ford aims to achieve the labor cost reductions, as far as possible, through voluntary employee separations in Europe and will be working closely with social partners and other stakeholders to achieve this objective.

Ford is establishing three customer-focused business groups in Europe – Commercial Vehicles, Passenger Vehicles, and Imports – each with clearly defined aspirations and dedicated organizations.

The new operating model will better enable the businesses to make fast decisions centered on customer needs.

Ford of Europe is targeting a 6 percent EBIT margin longer term, with returns in excess of the cost of capital for each business group.

 

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