Ford's cost-cutting plans 'could lead to 1000 job losses at Bridgend'

JLR and Ford prepare for mass job cuts

Jaguar Land Rover CEO Ralf Speth said in a statement: "We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry".

While the company confirmed it plans to take action, it didn't offer specifics, particularly how many jobs cuts can be expected. Armstrong believes Ford will soon have "a significantly stronger and more focused product line-up" capable of delivering sustainable profits.

"We have been asking the company for two years to clarify the situation regarding jobs and it's not until today that we have had the devastating answer".

At the time, boss Ralf Speth said: "In the latest quarterly period, we continued to see more challenging market conditions". This includes new nameplates and new versions of existing vehicles. The stock plunged 39 percent a year ago. The company is also in talks with unions about stopping production of its C-Max compact vehicle at its German factory as well reviewing struggling markets such as Russian Federation.

For the final business group which covers imported vehicles, Ford said this would cover a "niche portfolio of imported iconic nameplates for Europe" and would include Mustang, Edge, and another SUV to be revealed in April, along with an all-new Mustang-inspired full-electric performance utility in 2020.

Ford has crafted a turnaround plan for its European operations.

"Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover". It didn't say which models it would drop, but Armstrong said the profitable parts of the business were its SUVs and commercial vehicles.

"Britain's auto workers have been caught in the crosshairs of the Government's botched handling of Brexit, mounting economic uncertainty and ministers' demonisation of diesel, which along with the threat of a no-deal Brexit, is damaging consumer confidence".

Ford's debt has been trading like it's speculative grade, and Moody's Investors Service cut the carmaker's credit rating to one step above junk in August.

He said the announcement was not directly linked to Brexit, but he added that Ford will have to undertake a further review if the United Kingdom leaves the European Union without a deal in March. Audi, VW's biggest profit center, likewise noted more struggles ahead, reporting a 3.5 percent drop in sales past year.

The Dearborn, Michigan-based company said reductions would be achieved as far as possible through voluntary departures negotiated with unions and employee representatives.

Ford is undertaking a strategic review of Ford Sollers, 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.

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