Ford announces cost-cutting plans in Europe
Ford to cut administrative jobs across Europe and the UK
Ford Motor Co. has started cost-cutting by downsizing its European administrative operations as it announces plans to make its European sector yet more financially viable after reporting a $259m (£178m) profit in 2015.
The US automotive firm plans to cut costs by $200m (£137) within its European business sector by cutting administrative jobs, particularly in the UK and Germany. The company has announced a voluntary redundancy scheme across its European sector, which employs a total of 10,000 people; approximately 3,800 of those are based in the UK.
The company made an overall pre-tax profit of $8.8bn (£6.1bn) in 2015; a $259m profit in its European business, which is a positive result for the firm after it reported a staggering $598m (£411m) loss the previous year. However, the company expects a yet more successful 2016, with record breaking sales for its Edge and Kuga SUV models, as the market for these vehicles grows in Europe.
Ford Motor Co. has taken other measures in order to achieve its cost-cutting aims, including the closure of three European manufacturing plants; introducing a new manufacturing model to increase plant output; signing deals with powerful trade unions in Germany; and cutting the production of less popular models.
Jim Farley, Head of Ford operations in Europe, Middle East and Africa, said: “We are creating a far more lean and efficient business that can deliver healthy returns and earn investment. Our job is to make vehicles as efficiently as possible and spending every dollar in a way that serves customers’ needs and desires.”
The US automotive giant wants to increase overall profits by gradually increasing its operating margin to between 6pc and 8pc.
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