Ford plans on axing 12,000 jobs in Europe by the end of 2020
Ford is planning on closing multiple facilities in Europe by the end of 2020, leaving just 18 open, which will entail the layoff of 12,000 people, including at plants in the UK.
Ford Motor Co.
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06:20 05/11/24
According to Ford, the closures were the result of improved manufacturing efficiency.
It announced the closure of six assembly and component manufacturing plants by the end of 2020, including the closure of Bridgend Engine Plant in South Wales, of Ford Aquitaine Industries Transmission Plant in France, of Naberezhnye Chelny Assembly, St. Petersburg Assembly and Elabuga Engine Plant in Russia and the sale of the Kechnec Transmission Plant in Slovakia to Magna.
In the U.K., the Ford of Britain and Ford Credit Europe headquarters in Warley would also close later in 2019 and operations consolidated in Dunton.
In a press release issued on Thursday, the company said that around 2,000 of the job cuts would be salaried positions, adding that they were a part of the 7,000 salaried positions that Ford was reducing globally.
“Separating employees and closing plants are the hardest decisions we make, and in recognition of the effect on families and communities, we are providing support to ease the impact,” said Stuart Rowley, president, Ford of Europe.
“We are grateful for the ongoing consultations with our works councils,trade union partners and elected representatives. Together, we are moving forward and focused on building a long-term sustainable future for our business in Europe,” he added.
The press release revealed that Ford would implement a new business model together with a fresh vehicle line-up as part of the most comprehensive redesign ever of the company's European operations.
The carmaker also said that it was on track to significantly improve its financial results in Europe in 2019, which it said would pave the way to sustainable profits and its longer-term goal of delivering a 6% margin on an earnings before interest and taxes basis.
“Ford will be a more targeted business in Europe, consistent with the company’s global redesign, generating higher returns through our focus on customer needs and a lean structure,” said Stuart Rowley.
“Implementing our new strategy quickly enables us to invest and grow our leading commercial vehicle business and provide customers with more electrified vehicles, SUVs, exciting performance derivatives and iconic imported models,” he said.