Ford to drop vehicle production under European restructure

By Bruno Reis

The US car manufacturer, Ford Motor Company, is reportedly to cut the production of several vehicles as part of the restructuring plans for its European business.

The company has plans to stop manufacturing its Mondeo, Galaxy, and S-Max models, according to sources who revealed the news to the Sunday Times.

The firm intends to focus more on sport utility vehicles as part of its strategy for the future, the sources claim.

As part of the restructuring, which the company’s Chief Executive Officer Jim Hackett revealed could cost up to $11bn in July, Ford is expected to also cut jobs.

SEE ALSO:

Up to 12% of the firm’s global workforce are at risk – a total of 24,000 members of staff – with the company allegedly focusing mainly on European operations, especially Germany and Spain.

The company is currently working on “deep and fundamental” plans for its European unit in its headquarters in Dearborn, Michigan.

According to the President of Ford Europe, Steven Armstrong, the firm is “aggressively attacking costs, implementing facility and product program efficiencies to lower product and material cost, as well as capital intensity in Europe,” the Sunday Times reported.

Share

Featured Articles

Abu Dhabi Airports prepares for Terminal A opening

A decade in the making, Abu Dhabi International Airport welcomes 6,000 volunteers to test operational readiness of stunning new Terminal A building

Business Chief expands portfolio with new look and coverage

Business Chief Middle East & Africa launches with fresh new look and extended coverage of the region, with exclusive executive interviews and insights

How Octopus Energy grew to become an industry giant

Octopus Energy continues to grow after a deal was agreed to acquire Shell Energy in the UK and Germany, taking its customer base to almost seven million

Perkbox CEO: How to support employees through tough times

Human Capital

How Middle East is embracing the future of digital finance

Corporate Finance

UAE Lulu Group shifts business for global growth and IPO

Corporate Finance