Radical job cuts Ford to let go of 12,000 employees
Cologne · Ford, the carmaker, is parting company with 12,000 employees in Europe. This is how Ford wants to become profitable again on the European continent.
Almost a year ago, Ford announced its intention to restructure its European business. At that time, the company had slipped into the red in Europe. Under Jim Hackett's management, it had heavily criticized the range of models offered here. The large majority of them were underperforming. The situation was aggravated by the weakness of the pound in the course of the Brexit discussions. The United Kingdom is Ford's largest market in Europe.
According to Ford, it even thought about withdrawing from Europe, as General Motors did with the Opel sale. But then individual measures to improve profitability were announced time and again. Production of the B-Max minivan in Craiova, Romania, was discontinued. In Saarlouis the last compact vans C-Max and Grand C-Max are coming off the production line these days. The U.S. leadership was particularly dissatisfied with the vans. The end is also coming for the little Ka+. If small cars are to meet the exhaust regulations, they must be fitted with hybrid engines. This makes the vehicles so expensive that they can hardly find buyers for them. Ford has now made known how it sees the future in Europe and how it wants to become profitable again.
Employees: 12,000 of the approximately 56,000 employees and temporary workers at Ford Europe and joint ventures must leave by the end of 2020. The most, as the carmaker has already announced, will be in Germany, where Ford has the largest number of employees. 5,400 employees, including temporary workers and limited-term employees, will have to leave Ford in Germany. In the U.K., the number two in European employment, 3,000 people will lose their jobs, and in Russia 2,000 employees of the joint venture with Sollers will lose their jobs, as Ford Europe boss Stuart Rowley stated in a conference call. In France, Ford plans to close a transmission plant in Bordeaux with 800 employees.
Locations: In addition to the transmission plant in France, the engine plant in Bridgend, Wales with 1,700 employees will close down. Production will be discontinued here next year. In Valencia, the night shift will be reduced by half. The plants in St. Petersburg, Naberezhnye Chelmy and the engine plant in Elabuga will also be closed. This means that Ford will soon have 18 plants in Europe instead of 24, or will operate them with a partner.
Organization: As of July 1, Ford will have three divisions. Commercial vehicles will be managed from Dunton, England. Ford will focus on this segment and intends to expand its market leadership in Europe and in pick-up trucks. The alliance with Volkswagen is intended to help in this. Passenger cars, including the sporty off-road vehicles for the European market, will be steered by Roelant de Waard in Cologne. The Import Vehicles segment, which brings the Mustang or the Explorer SUV to Europe, is also based here.
Products: Rowley announced three new product lines. One of them is a well-known battery-electric car inspired by the Mustang. "Our future is rooted in electrification," Rowley said. Each model line will have at least one electric drive option. And a future line of electric cars will be produced in Europe.
Result: An EBIT margin of six percent in Europe is a long-term goal for Ford. But it should be achieved as quickly as possible, Rowley said. He did not want to commit himself as to whether Ford would be in the black in Europe this year.
(Original text: Ralf Arenz / Translation: ck)
