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Ford to slash over 5,000 German jobs in European overhaul
FRANKFURT AM MAIN, March 16, 2019 (BSS/AFP) – Ford on Friday said it
planned to cut “more than 5,000” jobs in Germany as part of a major
restructuring to boost profitability at the US car giant’s European
operations.
The group aims to carry out the jobs cull through voluntary redundancies
and early retirement, a spokeswoman told AFP.
“This announcement is part of the Ford restructuring announced in January
in Europe with the goal of returning to profitable business in Europe as soon
as possible,” she said.
“The aim is to cut more than 5,000 jobs in the most socially responsible
way possible,” the spokeswoman added, without detailing how the cuts would be
divided among Ford’s operations in Cologne, Aachen and Saarlouis.
The announcement, which was shared with Ford Germany employees earlier on
Friday, comes after the carmaker warned in January that “thousands” of jobs
would be cut as part of a revamp of its loss-making European division.
Ford employs some 53,000 people across Europe, around 24,000 of them in
Germany.
The overhaul comes at a time of widespread upheaval for global automakers
as the industry pivots to the greener, smarter cars of the future and
polluting diesel cars fall out of favour.
The industry is also grappling with the knock-on effects of US-lade trade
tensions, Brexit uncertainty, and economic slowdowns in the key European and
Chinese markets.
Ford, the second-biggest US automaker, plans to respond to the challenges
with a global reorganisation, including a huge cost-cutting drive and
partnership deals with rival carmakers.
The group, which booked a 2018 net profit of $3.7 billion, already
announced last year that it would halt production of almost all sedans and
small cars in the United States to save $11 billion.
In the United Kingdom, Ford plans to axe 1,150 jobs, according to
Britain’s Unite union.
In France, the group plans to close a plant making gear boxes near
Bordeaux, costing 800 jobs and drawing the ire of the French government.
In Russia, Ford said it would launch a strategic review of its joint
venture Ford Sollers.
Like other carmakers who have teamed up to reduce costs in an increasingly
competitive industry, Ford earlier this year announced an alliance with
German giant Volkswagen to jointly develop commercial vans and pickups from
2022.
The two companies are also in talks about potentially cooperating on
electric and self-driving cars, the latest example of rivals joining forces
to save on the massive research and development costs needed for the switch
to future technologies.
BSS/AFP/HR/0940