On Thursday, the 10th of January, the Ford said that they would be cutting thousands of jobs and exiting unprofitable markets as well as ceasing production of loss-making vehicles as part of a turnaround effort, targeted to achieve a 6 percent operating margin on European market.
In a statement, the carmaker said, “Ford aims to achieve the labor cost reductions as far as possible through voluntary employee separations in Europe.” After its arch-rival General Motors had secured a profit by selling its Vauxhall and European Opel to French Peugeot SA, the Ford found itself under immense pressure and a revamp of its European operation seemed much likely to happen. According to Ford, the carmaker would seek to exit their multi-van segment and halt the production of automatic transmission in Bordeaux in August.
Alongside, it would review its Russian operations and combine the UK headquarters. The Ford group vice president for Europe, Middle East and Africa, Steven Armstrong, had been quoted saying in a statement that they had been taking decisive actions for transforming the Ford business in Europe. Ford’s announcement of an overwhelming job cut came just after, UK’s biggest carmaker, Tata Motor owned, Jaguar Land Rover made the announcement of a substantial level of job cuts, which might even reach thousands.