AUTO INDUSTRY NEWS

Ford reveals plan to trim staff in Europe to bump profitability

Ford reveals plan to trim staff in Europe to bump profitability image

Text: Eric Tipan / Photos: Autoindustriya.com | posted February 04, 2016 12:28

Paltry sales in Europe forces Ford to employ cost-cutting methods

Despite the outstanding performance of Ford in the country through Ford Group Philippines, they find themselves struggling in Europe and on the verge of employing cost-cutting methods to keep up profitability.

Ford Motor Company, as reported by Automotive News Europe, will be offering retirement packages to white-collared employees in order to increase profit and save about US$ 200 million in administrative expenses.

The company has not revealed a target number of employees to retire, but they are looking at trimming down the more than 10,000 headcount currently on the payroll and Ford Europe President Jim Farley expects them to cut ‘hundreds’ of jobs.

Ford Europe has closed three plants in Europe since 2013 and lost US$ 3.1 billion from 2012 until 2014.

Automation along the production lines is an option being considered by the company in order to ‘reduce manufacturing costs’ along with changes in logistics and a better payment scheme through the worker’s union.

Ford is also looking at outsourcing work done by employees to agencies to be able to cut administrative expenses.

In spite of these radical moves by the company, Ford expects to sell over 200,000 SUVs and 40,000 performance cars in Europe.

Ford also revealed plans to launch seven new and updated models including the Focus RS.