Ford could drop some of its model offerings in Europe as it looks to restructure further in the region, according to media reports.
The Times newspaper reported that Ford is considering ending the manufacture of the Mondeo, Galaxy and S-Max models as it looks to concentrate on more successful models and SUVs.
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In July, Ford chief Jim Hackett said the company planned to spend around US$11bn on restructuring its European business.
Ford lost US$73m in Europe between April and June, hurt by declining diesel sales and a product portfolio seen by some analysts as relatively weak.
Reuters reported that analysts at Morgan Stanley believe Ford could cut as many as 12 percent of its more than 200,000 workers, with much of that approximately 24,000 concentrated in Europe. Ford may also trim its dealer network.
Ford Europe President Steven Armstrong said the company is focused on ‘aggressively attacking costs, implementing facility and product program efficiencies to lower product and material cost, as well as capital intensity in Europe,’ the Times reported.
An extensive Ford review of its European operations may also consider joint ventures with other companies to share costs.
The Times report said Ford’s internal restructuring deliberations would last several more months.
Ford is seen as under some pressure to restructure operations and improve its underlying profitability. CEO Jim Hackett has outlined cost management strategies aimed at making the company more agile and ‘fitter’.
See also:
Ford promises ‘necessary action’ over Brexit
Supplier fire and China woes dent Ford Q2 results
