Ford Europe To Boost Profits By Cutting Jobs
Ford’s European division will implement cost cutting measures in order to save $200 million dollars per year by introducing voluntary redundancies and improving manufacturing processes to increase efficiencies. During 2015 the Ford group made record profits of $10.8bn dollars.
Ford knows that market conditions change quickly and have decided workers should take the bullet for that success.
Ford’s Europe division made it’s first profit in four years during 2015, the UK and Germany will take the brunt of the job losses.
Most of the redundancies will focus on sales and marketing functions. Jobs related to car and engine production remain unaffected according to industry reports.
Ford is gearing for a new launch campaign which will see the introduction of seven new and facelifted models for 2016.
For employs just under 14k people in the UK, operating profits in Europe were comparatively slim, around $259m dollars.
The slim profits is one reason why cutting jobs will boost profits for 2016. Industry analysts say it’s an artificial measure to cloud over a lack of product profitability per unit manufactured.
Ford has already closed three European production factories since 2013 and are said to be looking at it underperforming plant in Romania as a possible next target to “improve” efficiencies.