Ford Europe Reveals ‘Roadmap to Sustainable Profitability’
Ford on Thursday revealed a new five-year plan that it says will help the company achieve “sustainable profitability” and its goal of 6 percent EBIT margin. Effective July 1, Ford Europe will split into three organizations as part of a new operating model: Commercial Vehicles, Passenger Vehicles, and Imports. The CV group will be led by Hans Schep and operate out of Dunton, U.K., and the PV group will be led by Roelant de Waard in Cologne, Germany.
“Ford will be a more targeted business in Europe, consistent with the company’s global redesign, generating higher returns through our focus on customer needs and a lean structure,” said Ford of Europe President Stuart Rowley. “Implementing our new strategy quickly enables us to invest and grow our leading commercial vehicle business and provide customers with more electrified vehicles, SUVs, exciting performance derivatives, and iconic imported models.”
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Ford confirmed that it will add at least three new nameplates to the lineup over the next five years in addition to the Kuga, Puma, and Explorer Plug-In Hybrid. One of these will be the as-yet-unnamed Mustang-inspired electric performance utility vehicle that will likely be unveiled by next year and imported from the United States. Ford also confirmed that every new vehicle moving forward will feature an electrified option.
Part of Ford’s roadmap to profitability involves the reduction of active European manufacturing facilities from 24 to 18 by the end of next year, a move that is expected to result in the loss of 12,000 jobs. Ford has confirmed that it plans to reduce global salaried positions by 7,000, and 2,000 of those positions will be shed as part of its European plan.
“Separating employees and closing plants are the hardest decisions we make, and in recognition of the effect on families and communities, we are providing support to ease the impact,” said Rowley. “We are grateful for the ongoing consultations with our works councils, trade union partners, and elected representatives. Together, we are moving forward and focused on building a long-term sustainable future for our business in Europe.”
Ford confirmed plans to close the Bridgend Engine Plant in South Wales; Ford Aquitaine Industries Transmission Plant in France; the Naberezhnye Chelny Assembly Plant, St. Petersburg Assembly Plant, and Elabuga Engine Plant in Russia; and the sale of the Kechnec Transmission plant in Slovakia.
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