In a bid to return to profit in Europe, Ford plans to cut over 5,000 jobs in Germany. The US carmaker will also reduce its workforce in the UK and has offered voluntary redundancy programmes for employees in both countries, it said in a statement.
“Through these programs and other initiatives, Ford of Germany expects to reduce its headcount in excess of 5,000 jobs, including temporary staff,” the company said, adding that the total number of positions affected in Britain is yet to be determined.
The Detroit carmaker, which sells the popular Focus and Fiesta hatchbacks in Europe, also announced it would streamline its lineup by “improving or exiting less profitable vehicle lines,” although it didn’t elaborate on which models would be culled.
This move is part of a turnaround plan announced by Ford in January that would involve thousands of job cuts and possible plant closures and the discontinuation of loss-making vehicle lines.
According to Reuters, Ford of Europe has been losing money for years and pressure to restructure its operations has increased since main US rival General Motors raised profits by selling its European Opel-Vauxhall brands to France’s Groupe PSA, the maker of Peugeot and Citroen. Ford’s turnaround plan is targeting a 6% operating margin in the continent.
Ford recently entered into an alliance with Volkswagen, although the partnership does not involve cross-ownership like the Renault-Nissan model.
So which one not making money?
B max, c max, s max? Galaxy, Mondeo or Kuga? Ford did very well with the Sierra, fiesta, escort and focus and very lucky with the popularity of Transit van.
The real Game Changing action by Ford to improve their company. Proton always make a Game Over action and lose money. Habisla Proton!
Ford is clever. they know when to cut jobs to save the company money. Unlike some car companies, keep overbloated staff of 10,000 and still losing money
Mitsubishi in Thailand has 6000 workers but produce 350,000 cars per annum
Some companies got 10,000 staff but produce only 50,000 cars per annum
Yeap. Ferrari should cut their overbloated staff and move to China.
what a shameful Ford. when Geely took over Proton, no retrenchments at all.
summore workforce set to increase due to strong sales,
Ford failed to turn Volvo into a profitable carmaker. Everyone thought Volvo was finished when sold to Geely, a Chinese company. But guess what? Volvo is stronger than ever and making record profits every year. Why the Chinese can succeed while Ford which has been in the car business for hundred of years failed?
Ford pumped soooo much money into Volvo, then have it to Geely ready to make profits
Ford pumped money into Volvo for it to move into USA market but that failed horribly when their focus changed from R&D to marketing. Now with Geely pumping even more money but into the right places like product development, Volvo is gaining market from better cars and not via more marketing. I hope to see this trend in Proton as well, so both will get a win-win situation.
please stick to the facts brian.. its not rocket science.. ford pumped so much money into volvo, and still failed, gave up and sold it off to geely, who then pumped in even more money, and made it work.
If u look at it that way then i am sure its either u or Ford is smoking too much weed.
Ford has forgotten how to make cars for the masses.
If only Proton workers worked hard like all other companies. How come Perodua can do it?
Do what? Make more profits for their Japanese lords? Why Proton workers need to follow such slavery?
This Ford will close down soon, always cut job and close office.