Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
June 27, 2019 08:22 AM

Ford to cut about 20% of Europe workforce in bid to boost margin

Oliver Sachgau
Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Ford will eliminate about 20 percent of the workforce across its European operations in a sweeping overhaul that reflects the challenges facing automakers in the region.

    The restructuring, which has been announced piecemeal, will involve reducing its manufacturing footprint in Europe to 18 facilities by the end of 2020 from 24 at the beginning of this year.

    Germany, the UK and Russia will be hardest hit by the cuts, which total about 12,000 staff and workers employed at joint ventures, Ford said Thursday.

    "Separating employees and closing plants are the hardest decisions we make," Stuart Rowley, Ford's president of Europe, said in a statement.

    Ford, struggling in the region's crowded and mature market for years, has been particularly hard hit by falling car sales in the UK as a result of the uncertainty surrounding the country's exit from the European Union.

    The challenge of investing in electric, hybrid and autonomous vehicles -- while having to overhaul combustion engines to meet tougher clean-air rules -- has forced Europe's automakers to slash fixed costs and streamline their model portfolios. For example, Ford has or will cut the C-Max and Grand C-Max minivans and the Ka+ small car.

    Underscoring the industry's woes, industry association ACEA on Thursday lowered its forecast for sales across the region, saying deliveries are likely to fall 1 percent this year. That compares with a previous prediction of 1 percent growth.

    Job-cut breakdown

    Germany: 5,000

    UK: 3,000

    Russia: 2,000

    France: 1,000

    Others: 1,000

    Source: Bloomberg

     

    Ford announced in January a major revamp for Europe, but at the time did not specify the full extent of the job cuts. As part of the changes, six plants will be closed or sold by the end of next year, including the Bridgend engine plant in South Wales, a transmission plant in France, a transmission joint venture with Magna International in Slovakia, as well as two assembly sites and an engine plant in Russia.

    Ford said that European operations are "on track" for significant improvement this year. Over the long term, the company is pushing to lift the division's profit margin to 6 percent -- lower than a previous goal of 8 percent.

    Around 2,000 of the jobs to be cut are salaried positions, which are included among the 7,000 salaried jobs Ford is reducing globally, the automaker said. The rest are workers on hourly contracts or agency workers.

    Ford Europe has 51,000 employees in Europe or 65,000 when joint ventures are included.

    Reuters contributed to this report

    RECOMMENDED FOR YOU
    VW's China JV with SAIC transforms Shanghai plant for EV production
    Recommended for You
    VW logos lit up
    VW's China JV with SAIC transforms Shanghai plant for EV production
    Porsche 911 Green
    E-fuels offer new life for combustion engines, but at what cost?
    Ferrari horse web_5_4.jpg
    Ferrari does not need to buy other supercar makers, CEO says
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us