Ford to streamline models, trim workforce in Europe

Ford has announced that it will be refocusing its product strategy in Europe, saying it will be adding new vehicles and derivatives in segments with the best growth and profit potential – such as crossovers and SUVs – and eliminating less profitable models over time.

The company has also introduced a voluntary separation programme on the Continent, as part of its plans to significantly reduce administrative and selling costs to attain industry benchmark levels of efficiency. The automaker says the move is expected to save it about US$200 million (RM827 million) a year on an ongoing basis.

The announcement of the new European plan to streamline operations is aimed at continuing the revival for the brand, which made a return back into the black last year. “In the past three years, Ford of Europe has improved its business in all areas and moved from deep losses to a US$259 million (RM1.07 billion) profit in 2015. This is a good first step,” said Ford’s executive vice president of Europe, Jim Farley.

“We are creating a far more lean and efficient business that can deliver healthy returns and earn future investment. Our job is to make our vehicles as efficiently as possible, spending every dollar in a way that serves customers’ needs and desires, and creating a truly sustainable, customer-focused business,” he said.

The company is set to launch seven new and refreshed vehicles in Europe this year, and models include the Focus RS as well as the C520 Kuga facelift and Edge SUVs. In the next three years, it says it will introduce five new models to compete in the SUV and crossover space, with the first of these being the second-gen Edge, which is now available in markets besides the US.

The range of all-wheel drive or 4WD offerings is also set to be increased, with eight due on the cards this year, a jump from the three it had in its European model line-up in 2012. With the launch of Focus RS, the company is also looking at record performance car sales in Europe this year, stating it expects to sell 40,000 fast Fords.

Meanwhile, the Vignale line, which currently consists of only a single model, the Vignale Mondeo, will be expanded to at least five Vignale models by next year. Elsewhere, plans are ongoing to introduce new plug-in hybrid, hybrid-electric and full electric vehicles in Europe by 2020.

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