September 19, 2020

Ford will restructure its business in Europe to improve profitability | Economy

Ford will restructure its business in Europe to improve profitability | Economy



Ford today announced a major restructuring of its business in Europe in the line of winning "profitability and reducing structural costs". Through a statement, the company indicates in general terms its interest in simplifying its product catalog, in which all the vehicles will have different electrical versions, and assume a "reduction of the labor surplus" of the group in its plants in the Old Continent, for which they plan to start negotiations with the social agents. The company, which does not quantify the affectation, foresees voluntary losses.

The statement sent by the US company does not mention its Spanish plant in Almussafes. On the other hand, it does say that it will close its automatic changes factory in Bordeaux at the end of this year, which has started talks to end the production of its C-MAC and Grand C-MAX models at the Saarlouis facilities (Germany) and the restructuring of its business in Russia, where it is implemented through a joint venture.

Ford wants to achieve an EBIT in Europe of 6%, which explains the restructuring it intends to negotiate with shareholders and unions. And, although he assures that he will offer more concrete data in the coming months, he has very clear his intentions, which involve defining his business in three areas: passenger, commercial and import vehicles. It also announces a potential alliance with Grupo Volkswagen to boost the growth of its commercial vans business.

Regarding its catalog of vehicles, Ford says it will focus on the most profitable segments, while it will not hesitate to abandon disappointing car lines and markets. "We will invest in the vehicles, services, segments and markets that best support us in a profitable and sustainable business in the long term," Steve Armstrong, Ford's vice president in Europe, explains in the statement.

The electric bet of Ford is to endow with all the possible electrical technologies to the current models and to those that arise in the future. From hybrids, plug-in hybrids to pure electric.

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