The American Multinational Ford Motors is among the leading car brands across the globe. The enterprise has its outlets and manufacturing in most of countries. The company is a major supplier of the automobile, commercial vehicles, and most luxury cars. Europe is the centre of trade for many businesses. However the recently it is stated that the car giant is planning to cut a major of 12,000 jobs in its various European operations by 2020 end.
What is the inside story?
The luxury car maker is making cuts in the costs and more importantly reconstructing the structure of its European business which is delivering losses. There are some other inclusions in the plan:
- Ford has planned to close its five plants by the end of the year 2020. It is worth mentioning that Ford Europe has 10 locations spread across the country. The selling plants include the Bridgend engine in Wales. It is also planning to sell another one.
- At present, there are 51,000 employees hired in Ford from Europe. The car manufacturer is expected to achieve the cuts in costs by voluntary redundancy.
- The car sector is facing struggles to match up the decreased and weak demand for cars in the bigger markets. There is a need for huge investments to shift the sector towards recent technology with the inclusion of electrical vehicles.
- The company stated that about 12,000 jobs are affected among which there are 2,000 of the salaried ones. It was earlier stated by the same to cut 7,000 of the salaried jobs.
What are the future plans for this?
The company has decided to close six of its manufacturing plants in Europe by the next year ends. The following are the major aspects of the same:
- The Bridgend Engine plant situated in South Wales is proposed for the closure.
- Ford Aquitaine Industries in France which is basically a Transmission plant is also in its closure plan.
- The plan also includes the closing of Naberezhyne Chelny Assembly, Elabuga Engine Plant and St Petersburg Assembly located in Russia.
- Kechnec Transmission Plant which is in Slovakia to Magna is also put to sale.
Along with these closing plans, there is also the plan for shift deductions in its various assembly plants located in Germany, Spain, Valencia, and Saar Louis.
What is the electric future plan of Ford?
The most appropriate reason for this is the shift of the whole car sector to electronic-based vehicles. Ford has stated for its European operations to reorganize within its three sections. These are:
- Customer focused
- Business groups (commercial and passenger vehicles)
The company plans to implement its commercial vehicle-based in Dunton in the UK. It also added focusing its entire Ford brand over the electric option. The company is promisingly shifting towards electrification and trying to root within it. Ford has made its goal clear with the provision of accessible vehicle options to the customers with fun to drive and improved economy for the environment for the better world and better facilities.