Ford set to axe 1,000 jobs at Bridgend plant

Postado Janeiro 12, 2019

Armstrong said the company is in negotiations with worker representatives about potential job cuts at its Saarlouis plant in Germany, where 6,190 staff assemble cars, as the carmaker considers discontinuing production of its Ford C-Max model.

Meanwhile, Ford Europe announced today it will be cutting thousands of jobs from its workforce, which now totals 53,000; 24,000 of those workers are based in Germany.

AM reported last monmth on reports that JLR would cut up to 5,000 jobs from its work force.

"There'll be significant impact across the region", Armstrong said.

But this news today is something that unions have feared for almost two years.

Ford shares traded down 0.5 percent to $8.68 as of 11 a.m. Thursday in NY trading.

Going forward Ford will seek to offer an electric or hybrid version of all its vehicles and the electrification plans are not contingent on striking a deal with Volkswagen, Armstrong said. Like many other carmakers, Ford has warned it won't meet its forecasts for 2018, and chief executive officer Jim Hackett jettisoned a goal to reach an 8% profit margin by 2020.

The overhaul marks another sign of pressure on traditional automakers as they grapple with fundamental technology changes, stiffening environmental regulations and trade tensions.

Ford Europe's announcement on layoffs came as Jaguar Land Rover (JLR) announced "substantial' job cuts".

Ford was among USA carmakers that fell short of expectations when the industry presented sales for past year, adding to concern that a slowdown may occur in 2019.

The UK and European automotive industry is in deep turmoil after a bruising 2018.

"We believe Ford Europe could require as much as a 20 to 30 percent reduction of capacity and headcount", Morgan Stanley analyst Adam Jonas said in a note on Thursday. The review also includes "rescaling the footprint of the business" with Ford reviewing the efficiency of its plants, Armstrong said.

Among concrete steps in key markets Ford said it will end production of small automatic transmissions in Bordeaux, France.

It is also undertaking a review of its joint venture in Russian Federation.

Ford's European business, which relies on models like the recently revamped Fiesta and Focus hatchbacks, reported a $245 million loss during the third quarter, widening from $192 million a year earlier. In America, the company is already dropping several sedans.

Over the long term, Ford is targeting earnings before interest and taxes of 6% of sales in Europe.

It will also consolidate its United Kingdom and credit headquarters at its technical centre in Dunton, and review its Russian joint venture, Ford Sollers.

"We will migrate out of the MPV segment", Armstrong said, referring to the family vans segment. "We will still have a comprehensive lineup of cars in future with primarily SUVs and crossovers".