Ford and JLR to cut thousands of jobs

Kevin Lamarque  Reuters  Files

Kevin Lamarque Reuters Files

Within the first nine months of 2018, Ford reported a loss of $199 million in Europe versus its $278 million profit in 2017 over the same time period.

Ford, in a statement, said that "structural cost improvements will be supported by a reduction of surplus labor".

Ford is planning to cut more than 1,000 jobs in the United Kingdom over two years, with more than half the workforce at its Bridgend plant in south Wales likely to be axed.

Armstrong said any layoffs and plant closures at Ford would be subject to the outcome of formal negotiations with labour representatives, adding that he hoped that job cuts could be achieved by "voluntary means".

"In the last couple of decades, Ford of Europe has never really been sustainably profitable", Steven Armstrong, company vice president and head of its operations in Europe, Middle East and Africa, said in a conference call with reporters.

"We want to be a net contributor of capital and not a net detractor", Armstrong told journalists on a later call, referring to Europe's financial contribution to USA parent Ford Motor. The 52-week range is $7.41 to $13.48, and the consensus price target is $9.97.

Volkswagen AG, which is in talks with Ford about a deeper alliance, said Thursday its namesake brand will redouble its focus on returns amid another year of "enormous challenges", foreshadowing more belt-tightening. All new models in the European Union are to be sold with an electric or hybrid option. The Automotive segment engages in designing, manufacturing, marketing and servicing of Ford cars, trucks, SUVs, and electrified vehicles, as well as Lincoln luxury vehicles.

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Ford is overhauling its European operations in an attempt to increase profit margins, including shutting down loss-making vehicle lines.

Carmakers are also facing a shift in consumer preference away from sedans and hatchbacks to sport-utility vehicles. From Fiesta to Transit, either a mild-hybrid, full-hybrid, plug-in hybrid or full battery electric option will be offered, delivering one of the most encompassing line-ups of electrified options for European customers. Ford posted a loss of €245 million loss before interest and taxes in the third quarter.

It is also undertaking a review of its joint venture in Russian Federation.

The firm will also expand its commercial vehicle business, which will be one of three new divisions being created, along with passenger vehicles and imported vehicles.

The carmaker said it would proceed with plans to close a transmissions plant in France, and it has started negotiations with unions about halting production of the C-Max compact auto at a factory in Germany.

It will also review its operations in Russian Federation, and combine the headquarters of Ford UK and Ford Credit to a site in Dunton, Essex.

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