Ford "slows down" and will eliminate thousands of jobs in Europe to cut costs



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The company has announced that it will also cut low-sale models and close factories on the former continent. The automaker's cost-cutting offensive comes to a region that has been hampering its profits for years.

Ford, which employs about 54,000 workers across the continent, mainly in Germany, the UK and Spain, will also review its joint venture in Russia, part of a series of measures that Steven Armstrong, Ford's European helmsman, called " a change". radical in the performance of the business. "He did not specify the number of possible job cuts and said factory closures are an option to streamline operations.

"There will be a significant impact across the region," Armstrong admitted. "This is not a problem for a year or two. We have had periods of profitability, but not at the expected level."

Ford began a $ 11 billion restructuring plan last year after both Europe and Asia posted losses and increased investment costs in electric and stand-alone vehicles. Like many other automakers, the company warned it would not meet its targets until 2018 and its chief executive, Jim Hackett, abandoned the goal of achieving a profit margin of 8 percent by 2020.

Sales decrease

At a time when the global auto market is showing the first signs of slowing down after years of growth, Ford has restructured its global operations out of the US sedan market to focus on larger vehicles and focus on local production in China. Europe has been particularly difficult for the company because of the key UK market, where the chaos around Brexit has generated an additional challenge.

The move represents yet another sign of pressure for traditional carmakers facing fundamental technological changes, stricter environmental regulations and trade disputes. Tata Motors' Jaguar Land Rover, formerly part of Ford, plans to shed 4,500 jobs in response to a slowdown in sales.

Ford was one of the US automakers that did not meet sales expectations last year, raising concerns that a slowdown will occur in 2019. China, which led the industry's growth, revealed on Wednesday that auto sales in the country fell for the first time in more than two decades.

Armstrong said in a video call that the future of European operations is in crossover vehicles and SUVs, and that sedans and compact vans are in decline. He warned that any action taken by the company should be significantly more dramatic if a brexit is produced without agreement by the end of March.

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