Today Ford announced that it is planning to dismiss 12,000 workers across Europe. Currently, there are 24 manufacturing facilities of the carmaker across Europe. Meanwhile, by the end of 2020, the company aims to lessen the number to 18. Thus Ford has decided to kick out a new vehicle line-up, dismissing workers and readjusting its functions in order to enhance its fiscal performance in the area. Besides, the move will enable the automobile manufacturer to focus more on the commercial vehicles business along with the sale of SUVs. Although, the realigning also involves the loss of 12,000 jobs, about which the company had announced before few months.
The move will also result in the sale or closure of around six manufacturing facilities in Europe. According to the company, the entire restructuring practice would considerably boost its economic outcomes for the current year. Even more, since last year, Ford has not made a notable profit from the region. According to Ford Europe President Stuart Rowley, Ford will be a more focused business in Europe, uniform with the company’s international reorganization. The executive noted the move would give rise to higher returns while the company will focus on customer requirements and incline structure. Rowley noted removing workers and shuttering plants are the toughest decisions they have ever made. Besides realizing the impact on families and communities, they are offering backup to smoothen the effect.
On the other hand, the realignment will result in three new business groups, including commercial and passenger vehicles. In the case of Vans and pickups, Ford already leads the European market. Now the automobile maker aims to double its viability in the sector within the upcoming five years. The company also intends to promote its passenger vehicle bus industry in the territory. Apart from this, Ford wishes to increase its imports by three times in the sector until 2024. As an effort to achieve its aim, the company will launch a brand new fully-electric Mustang in 2020.