Recently Ford has made an announcement that the company will be cutting down about thousands of its jobs.
This will be because of the restructuring plan of the company so as to overhaul the European operations of the company.
The Strategy apart from the Job Cuts
The company also said that the new strategy will cost it around $11 billion. The new strategy will take place for the upcoming three to five years.
Apart from the job cuts, the company will also be ending the production of certain models of the vehicles which are currently unprofitable along with the closure of a plant in France.
Ford is also talking to the unions regarding the ceasing of the production of the C-Max model of the compact car.
This will be at the factory located in Germany. There will also be a reviewing of the markets which are struggling. This best example of this is Russia.
Performance of company in European market
According to the reports of CNN, in the United States, Ford has very strong sales along with great profitability. However the Ford lags behind its competitors in China and is also struggling in the markets of Europe as well as Latin America.
The company recorded only loses which were worth $199 million in the first nine months of the previous year. This was in Europe which was opposite to the profit of $278 million which the company had incurred in the same period, the previous year.
For the year 2018, Ford had projected its fiscal loss for that region.
According to the reports of CNN, there is even speculation in the market that Volkswagen is looking to partner with Ford. This is for the development of autonomous cars along with the technology that is related.
Volkswagen is the largest manufacturer of cars in the world and the company also has a very strong presence when it comes to the markets of Europe
The two companies have confirmed only a commercial venture of vehicle that they will be doing together until today.
Ford currently has about 53,000 employees in Europe along with two engine plants that are located in the United Kingdom.
Source: IB Times, Business Insider