Financial analysts suggest 24,000 jobs could be axed in Europe, along with Mondeo, Galaxy and S-Max models
Jimi Beckwith
3 September 2018

Ford has dismissed reports that it could cut 24,000 jobs in Europe and axe a number of models in a major cost-cutting spree, branding them "pure speculation".

The reports are based on analysis from Morgan Stanley, which estimated the firm will shed 12% of its global workforce as part of a major cost-saving exercise. The analysis also suggests the Mondeo, S-Max and Galaxy could face the axe due to low sales, with customers for these models instead looking to the growing SUV market. Ford US is in the process of dropping saloons from its range, to focus on pick-ups, SUVs and the Mustang sports car. 

A £9 billion restructuring of the brand’s European operations is planned, as Ford fights to compete with General Motors and Fiat Chrysler Automobiles. In Europe, Ford made losses of nearly £57 million in the second quarter of 2017.

The Mondeo is currently built in Valencia, Spain, while the Spanish plant also handles construction of the Galaxy and S-Max. If those models were to be cut, it’s likely that the workforces in these plants would also shrink. With other models in the brand’s line-up built in Germany, a pinch is likely to be felt there too. British plants in Dagenham and Bridgend could also be affected, but no word has officially been given on where cuts will be made.

Ford said: “We currently have our strongest-ever vehicle range in Europe. While we regularly evaluate our future product plans based on customer preferences and trends, there are no changes at this time. Mondeo remains a core part of our product line-up in Europe. We have upgrades coming for Mondeo later this year, which will see new powertrains as well as exterior and interior updates as well as enhancements to the Mondeo Hybrid range.

“The number of job losses quoted by a number of media is pure speculation and we would not comment on that. As we said in our second quarter earnings [statement] in July, our Europe business requires a major redesign to deliver our longer-term target of 6% EBIT margin.”

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Comments
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3 September 2018

I'll likely never see a GT in West Somerset, the Mustang is too fat for roads round here and the rest of the range are as bland as most of the cars on the market today.  Nothing I'll actually miss if Ford stop building them.

Citroëniste.

4 September 2018
Bob Cholmondeley wrote:

... the Mustang is too fat for roads round here...

Similar comments often appear about large cars and I find them curious. I'm an Aussie and I've never been to England. As you can probably imagine, the roads here are wide and open. How small are your roads? People also say the larger cars are too big for your carparks and garages. How do 4WDs cope if even a Mustang is too big? What about vans, trucks and buses? Do you have roads with restrictions on certain vehicle types?

4 September 2018

There's a bit of exaggeration going on. The Mustang isn't actually that big. Some urban roads in particular have width restrictions but I don't think they're all that common. After all people drive around in Transit and similar vans which are bigger than any car you're likely to encounter and they seem to manage.

3 September 2018

They haven't actually denied the reports, they've dismissed them as speculation.

I'm afraid it's inevitable that there are going to be cuts though. Ford lose money in Europe and they're bound to take some action, although it remains to be seen if they'll follow the GM route and pull out altogether.

Remember that Ford are a bit of a one trick pony in that they make the bulk of their profits on one model, the F series pickup, which they sell essentialy in only one market. Looking at the short term and assuming that profits today are what interest their investors, they should just abandon everything except the F series.

 

FMS

6 September 2018
Cé hé sin wrote:

They haven't actually denied the reports, they've dismissed them as speculation.

I'm afraid it's inevitable that there are going to be cuts though. Ford lose money in Europe and they're bound to take some action, although it remains to be seen if they'll follow the GM route and pull out altogether.

Remember that Ford are a bit of a one trick pony in that they make the bulk of their profits on one model, the F series pickup, which they sell essentialy in only one market. Looking at the short term and assuming that profits today are what interest their investors, they should just abandon everything except the F series.

 

 

Did you intend to pun with the "Ford are a bit of a one trick PONY" comment?.

3 September 2018

Not surprised if Ford got rid of the C-Max,S-Max & Galaxy,MPV sales have been on the slide for some time. The B-Max has already gone in effect replaced by the Eco-Sport and the other three MPV's could easily be replaced by the Edge & Kuga in the family car market. Worldwide Ford seem to be on the retreat,in Australia car manufacturing has ended and in the US the Focus has already gone and the Fiesta will soon follow leaving the Fusion (Mondeo) as the entry level saloon in the US market

3 September 2018

...it was always going to end in tears.

Horses for courses - something the Japanese seem very good at.

Steam cars are due a revival.

3 September 2018

Ford have recently announced that they are going to collaborate with VW in Europe.

GM did this with Peugeot in 2015 & ended up selling lock,stock & barrel to the French!!!!

Looks like the Americans will eventually pull out of Europe totally.

4 September 2018
They should halt any successor to the Mondeo, and instead build a credible successor to the mediocre and dangerous, yes dangerous Kuga - they've been catching fire in Australia and South Africa.

8 December 2018

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