Ford (F) on Thursday outlined an efficiency program which will impact thousands of jobs by the end of 2020 as the automaker detailed a new operating model aimed at speeding up decision-making and increasing profitability.
Approximately 12,000 jobs will be impacted at Ford’s wholly owned facilities and consolidated joint ventures in Europe by the end of 2020, primarily through voluntary separation programs, the company said in a statement.
Ford said its new European operating model and resulting organization would be effective on Monday. Three new business groups — commercial vehicles, passenger vehicles and imports — have been established to facilitate “fast decision-making centred on customer needs,” it said.
Ford said it aims to double its commercial vehicle profitability in Europe in the next five years, with the growth supported by its strategic alliance with Volkswagen, its Ford Otosan joint venture in Turkey and a restructured Ford Sollers joint venture in Russia.
“Ford will be a more targeted business in Europe, consistent with the company’s global redesign, generating higher returns through our focus on customer needs and a lean structure,” said Stuart Rowley, president of Ford of Europe.
The imports group is to comprise a niche portfolio of passenger vehicles including Mustang, Explorer and a fully electric performance utility coming in late 2020. The company said that it expects to more than triple passenger vehicle imports into Europe annually by 2024.
Ford’s manufacturing footprint in Europe will be reduced to a proposed 18 facilities by the end of 2020, from 24 at the beginning of 2019, the company said.
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