Ford is planning to cut several hundred jobs in Europe in a voluntary programme, as it comes under growing pressure to cut costs in a declining market.
Like GM, Ford is making considerable financial losses in Europe (projected at $1bn in 2012) and is also understood to be studying options to reduce manufacturing overcapacity in the region.
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Ford will offer severance packages to several hundred workers in Germany, the UK and other parts of Europe.
“As part of an on-going review to achieve greater efficiencies in all areas of the Ford of Europe business in the current business environment, Ford is implementing three programs – one in Germany, one in the UK, and a third for the rest of Europe – to reduce personnel-related costs,” the company said in a statement.
“The reductions will be achieved through a combination of voluntary Ford salaried staff separations, and reductions in expenditure on agency workers and purchased services. Ford of Europe expects the programs to result in the reduction of several hundred salaried positions, but exact figures won’t be known for a few months.”
The Frankfurter Allgemeine Zeitung first reported the news of the Ford job cuts on Tuesday (September 25), in a report released in advance of publication Wednesday.
Ford has outlined a business strategy for Europe based on key new models – such as the new Mondeo – earlier in September. However, the weakness of the European car market this year alongside Ford’s already substantial financial losses has increased the pressure for further cost cuts.
Figures released by ACEA show that in the month of August, Ford car sales in the EU area were down by 28.9% at 41,536 (the overall EU car market was down by 8.9% on the previous year).
