Ford to trim jobs and axe models 03 | 02 | 2016
FORD IS TO reduce the size of its workforce and axe some less-profitable models in its range as it bids to increase its profitability in Europe.
In major plans announced today, which will see a major overhaul of Ford of Europe, the company will introduce a "voluntary separation" programme, which will allow workers to leave the company at their own behest.
According to Ford, the move is expected to save $200 million (around £138m) annually, and is designed to give Ford “industry-beating levels of efficiency”.
In line with the "voluntary separation" programme, Ford confirmed it will be “eliminating less profitable models” from its product range. Among those is the current Ka, which is due to end production this year. An all-new Ka is scheduled for launch in 2019.
The future, according to Ford, will see the Blue Oval-badged car giant putting a greater emphasis on SUVs and crossovers, a strategy that was first announced last September.
With the new Ford Edge SUV set to go on-sale in Scotland in May, with prices starting just under £30,000, the current range will also see the introduction of Ford Ecosport and Kuga models. These will then be joined by two new crossovers, believed to be based on the Fiesta and Focus.
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Ford is also planning to grow its market of all-wheel drive models, Currently the company offers eight models with all-wheel drive and expects to sell around 140,000 AWD vehicles in Europe this year.
According to Ford, the company's European strategy calls for a “more streamlined and profitable product line; more emotional and experimental brand communications; and a leaner cost structure to lower break-even and help offset growing regulatory costs.”
Announcing the plan today, Ford’s European boss Jim Farley said: “In the past three years, Ford of Europe has improved its business in all areas and moved from deep losses to a $259 million (about £178m) profit in 2015. This is a good first step.
“We are absolutely committed to accelerating our transformation, taking the necessary actions to create a vibrant business that’s solidly profitable in both good times and down cycles.
"Our job is to make our vehicles as efficiently as possible, spending every dollar in a way that serves customers’ needs and desires, and creating a truly sustainable, customer-focused business.”
According to Ford, it will launch seven new or refreshed vehicles in 2016, including the new Focus RS performance hatchback, and will also expand its hybrid and electric offerings in Europe.
By 2020, it's planned that Ford will add 13 new electric vehicles to its range: a all-new version of its Focus Electric is already known to be in development.
Related: New Ford Edge to cost from £29,995
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Jim McGill