Ford to cut car models
US car manufacturer Ford plans to drop production of some of its car models as part of a planned operational restructuring announced earlier this year, sources told the Sunday Times.
The British newspaper reported that Ford planned to end production of Mondeo, Galaxy and S-Max models and focus on sport utility vehicles.
According to Reuters, in July, Ford’s chief executive officer, Jim Hackett, said the company planned to spend around $11 billion on a restructuring of its European business.
Morgan Stanley analysts estimate Ford will remove 12 per cent of its 202,000 workers, mainly in its European operations, the Sunday Times reported.
Ford lost $73 million in Europe between April and June and faces additional challenges from Britain’s plans to leave the European Union.
The review’s conclusions, which aren’t expected for several months, may also recommend putting some or all of Ford’s European unit into a joint venture with a rival such as Volkswagen AG, the Sunday Times reported.
Ford Europe president Steven Armstrong told the Sunday Times that the company is focused on “aggressively attacking costs, implementing facility and product program efficiencies to lower product and material cost, as well as capital intensity in Europe."
