Ford can deprive thousands of people of their jobs in Europe

Ford can deprive thousands of people of their jobs in Europe

September 3, 2018 0 By autotimesnews

In an attempt to revive its business in Europe, the American company is considering the possibility of dismissing 24,000 workers and stopping the release of several models, including Mondeo. This is reported by the British edition of The Times.

In recent years, Ford significantly lags behind its compatriots General Motors and Fiat Chrysler Automobile. This is due to the unimportant indicators that the European division of the company demonstrates. According to The Times, 24,000 workers may lose their seats, which is 12% of the total number of employees worldwide.

In July this year, Ford CEO Jim Hackett said that a deep restructuring of European business would require $ 11 billion. In this market, sales of diesel cars have fallen dramatically, and the range offered here by the company is rather limited. Between April and July, losses in Europe amounted to $ 73 million.

In addition, Americans who have factories in the UK, will face another problem – the consequences of Brexit. Because of him, the import of spare parts and components to continental Europe may fall under duties.

Experts at Morgan Stanley believe that Ford will reduce about 12% of its 202,000 employees across Europe. Specifically in the UK under the reduction will be employees of enterprises located in Wales and the District of London. These measures will also affect plants in Germany and Spain, which produce Mondeo, Fiesta, Focus and Galaxy.

Some sources are confident that getting rid of these models, the manufacturer frees up space for more economically advantageous crossovers. So, by 2020 it is planned to completely stop the release of the family Mondeo. The number of official dealers will also remain, according to the insiders. On the British territory to date, there are 41 centers and 463 outlets operating under a franchise.