Ford has announced the launch of a new business model for its European business in a bid to return to profit. The bad news are that the car maker will slash 12,000 jobs as part of the new plan, or around 20 percent of its European workforce, by 2020.
The good news – at least for prospective customers – is that Ford will introduce three new model names in the region in the next five years. One will be the “Mustang-inspired, fully electric performance utility”, as per the company’s own description, but the rest of them are a secret – for now.
Every new nameplate will include at least one electrified option, with Ford confirming that a family of battery electric car will be assembled in Europe.
The Blue oval stated that three of its factories in Russia have ceased production, while plants in France and Wales will close and the facilities in Valencia, Spain and Saarlouis, Germany will operate with less shifts. Overall, Ford’s manufacturing footprint in Europe will be being reduced to 18 plants, down from 24, by the end of 2020.
Out of the 12,000 axed jobs, 2,000 are salaried positions, with the rest coming from voluntary separation programs, workers on hourly contracts and agency workers. Ford Europe employs 51,000 people in the region.
“Separating employees and closing plants are the hardest decisions we make, and in recognition of the effect on families and communities, we are providing support to ease the impact,” said Stuart Rowley, president, Ford of Europe.
“We are grateful for the ongoing consultations with our works councils, trade union partners and elected representatives. Together, we are moving forward and focused on building a long-term sustainable future for our business in Europe.”