Ford's Axe Falls in Germany

by Steph Willems

Published: March 16th, 2019

After a fiscally damaging year that Ford CEO Jim Hackett implored employees to forget, cuts are coming to the automaker’s workforce, and America won’t be spared. But America can wait, as that region remains a major profit generator. Other regions aren’t, and the automaker’s axe has already fallen in South America.

Now it’s Germany’s turn, with Ford announcing the loss of “more than 5,000” workers in that country.

Ford’s full-year operating profit (before special items) fell 28 percent in 2018, with its European, Chinese, and South American businesses serving as a balance sheet boat anchor. The company’s operations in Europe lost $398 million last year, a complete reversal of the $367 million profit it recorded in 2017.

A major European restructuring plan is already underway, with January bringing news of axed car models, a shuttered French plant, and consolidation of its UK operations. On Friday, Ford raised the spectre of hefty job cuts, and not just for Germany.

The 5,000-plus German cuts are expected to come from “voluntary redundancies and early retirement,” a Ford spokesperson told AFP. “The aim is to cut more than 5,000 jobs in the most socially responsible way possible.”

“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,” the spokesperson continued, without mentioning how those cuts would be distributed. Germany hosts two body and assembly plants (Cologne, Saarlouis), and an R&D center in Aachen. A desirable version of a model Ford no longer offers in America is built in that country.

Of the roughly 53,000 workers Ford employs in Europe, some 24,000 of them are located in Germany. Ford also said more job losses can be expected in the UK, with AFP reporting 1,150 will get pink slips, according to UK union Unite.

[Image: Ford]

#Europe #Ford #FordEurope #HighFinance #Jobs #Restructuring

Steph Willems

More by Steph Willems

Comments

Join the conversation

2 of 51 comments

Jacob_coulter on Mar 17, 2019

This is not the sign of a growing, vibrant company. I had a small stock position in Ford that I dropped. Just seemed like dead money to me.

Like Reply
Jeff S on Mar 17, 2019

"This path looks like more mergers, more automation and job cuts." I couldn't have said it any better. Perfect summation of what is happening with GM, Ford, and FCA.

Like Reply

Recent Comments

Carrera 2014 Toyota Corolla with 192,000 miles bought new. Oil changes every 5,000 miles, 1 coolant flush, and a bunch of air filters and in cabin air filters, and wipers. On my 4th set of tires.Original brake pads ( manual transmission), original spark plugs. Nothing else...it's a Toyota. Did most of oil changes either free at Toyota or myself. Also 3 batteries.2022 Acura TLX A-Spec AWD 13,000 miles now but bought new.Two oil changes...2006 Hyundai Elantra gifted from a colleague with 318,000 when I got it, and 335,000 now. It needed some TLC. A set of cheap Chinese tires ($275), AC compressor, evaporator, expansion valve package ( $290) , two TYC headlights $120, one battery ( $95), two oil changes, air filters, Denso alternator ( $185), coolant, and labor for AC job ( $200).
Mike-NB2 This is a mostly uninformed vote, but I'll go with the Mazda 3 too.I haven't driven a new Civic, so I can't say anything about it, but two weeks ago I had a 2023 Corolla as a rental. While I can understand why so many people buy these, I was surprised at how bad the CVT is. Many rentals I've driven have a CVT and while I know it has one and can tell, they aren't usually too bad. I'd never own a car with a CVT, but I can live with one as a rental. But the Corolla's CVT was terrible. It was like it screamed "CVT!" the whole time. On the highway with cruise control on, I could feel it adjusting to track the set speed. Passing on the highway (two-lane) was risky. The engine isn't under-powered, but the CVT makes it seem that way.A minor complaint is about the steering. It's waaaay over-assisted. At low speeds, it's like a 70s LTD with one-finger effort. Maybe that's deliberate though, given the Corolla's demographic.
Mike-NB2 2019 Ranger - 30,000 miles / 50,000 km. Nothing but oil changes. Original tires are being replaced a week from Wednesday. (Not all that mileage is on the original A/S tires. I put dedicated winter rims/tires on it every winter.)2024 - Golf R - 1700 miles / 2800 km. Not really broken in yet. Nothing but gas in the tank.
SaulTigh I've got a 2014 F150 with 87K on the clock and have spent exactly $4,180.77 in maintenance and repairs in that time. That's pretty hard to beat.Hard to say on my 2019 Mercedes, because I prepaid for three years of service (B,A,B) and am getting the last of those at the end of the month. Did just drop $1,700 on new Michelins for it at Tire Rack. Tires for the F150 late last year were under $700, so I'd say the Benz is roughly 2 to 3 times as pricy for anything over the Ford.I have the F150 serviced at a large independent shop, the Benz at the dealership.
Bike Rather have a union negotiating my pay rises with inflation at the moment.