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The U.S. headquartered automotive manufacturer Ford is pursuing a US$14 billion global cost-saving plan and has announced plans to cut jobs in Europe. Similarly, automotive group Jaguar Land Rover is to cut 4,500 jobs globally but most affected in its home UK market.
Ford, which employs about 53,000 people in Europe across 15 plants, is said to be reviewing each of its European business in a bid to become more efficient in one of the world’s most competitive markets. The carmaker is in talks with different workers’ unions and it is not known how many jobs will be concerned but ‘thousands’ have been cited by Steven Armstrong, President, Ford Europe.
Ford is reported to have made financial losses in Europe over the past two years, due to factors that include foreign exchange rates, a fall in diesel sales and a softening of the market. Two years ago, General Motors pulled out of Europe after recording two decades of losses in its Opel-Vauxhall division, which it sold to French automotive group, PSA.
As previously reported by ILM, Ford expressed its dissatisfaction with the brand’s performance in Europe and said it aimed to redesign and re-centre its operations in the region. The American automaker expects to reduce the number of vehicles in its line-up to focus on more profitable areas of the market. All new models in the EU are to be sold with an electric or hybrid option.
Meanwhile, UK based premium automotive manufacturing Group, Jaguar Land Rover (JLR), has announced it is cutting about 4,500 jobs from its 40,000 workforce. The layoffs are said to be part of a £2.5 billion (US$2.76 billion) cost-cutting plan. JLR is said to have been particularly vulnerable with the economic slowdown in China, the carmaker’s biggest and most profitable market, and the slump in diesel sales and uncertainty over Brexit. JLR’s sales in China declined by almost 50% in recent months.
Sources: Financial Times/BBC