Ford, which is currently going through a somewhat painful restructuring process (including possible redundancies in its Irish operations) has announced that its new European business plan comes into force on July 1st.
"Ford will be a more targeted business in Europe, consistent with the company's global redesign, generating higher returns through our focus on customer needs and a lean structure," said Stuart Rowley, president, Ford of Europe. "Implementing our new strategy quickly enables us to invest and grow our leading commercial vehicle business and provide customers with more electrified vehicles, SUVs, exciting performance derivatives and iconic imported models."
Three distinct divisions
Ford of Europe will now be divided into three sections: Commercial Vehicles (CVs), Passenger Vehicles (PVs) and Imports - are established to facilitate fast decision-making centred on customer needs. Each has a dedicated management organisation including leaders responsible for marketing, manufacturing and product development.
In spite of Brexit, the Commercial Vehicles department will be centred on Dunton in the UK. General manager Hans Schep has said that "Ford intends to grow its leadership as the top-selling CV brand in Europe, including leading the pickup segment, and to double its CV profitability in Europe in the next five years." That plan includes the much-publicised vehicle sharing agreement with Volkswagen, as well as joint ventures in Turkey and Russia.
The Passenger Cars group will be run by general manager Roelant de Waard based in Cologne, Germany, at Ford's old European design headquarters in Mekernich. The imports division will also work out of Cologne, and could become a hugely important part of Ford's European operations. While we're likely to see the end of European sales of the C-Max, S-Max, Galaxy, and Mondeo in the short term, Ford could potentially plug some of those gaps with models imported from the US. The new Explorer has been earmarked for European sales (albeit not in right hand drive yet) and it's likely that the forthcoming new Bronco will make it to this side of the Atlantic too. Ford plans to triple the number of vehicles it imports to Europe from the US by 2024.
More US imports
As well as the Explorer, and alongside the just-announced new Puma, and recently-revealed third generation Kuga, Ford is promising three entirely new models in the next five years, including the Mustang-inspired all-electric crossover, currently code-named Mach 1. Every new Ford passenger vehicle nameplate will include an electrified option, delivering one of the most comprehensive line-ups of electrified options for European customers. A future family of battery electric vehicles will be assembled in Europe, says Ford.
"Our future is rooted in electrification," added Rowley. "We are electrifying across our portfolio, providing all of our customers with more accessible vehicle options that are fun to drive, have improved fuel economy and are better for our environment."
Closures and layoffs
Part of this process involves closures and layoffs, though. Ford's Bridgend engine plant in Wales has already been earmarked for closure, along with Ford Aquitaine Industries Transmission Plant in France; the Naberezhnye Chelny Assembly, St. Petersburg Assembly and Elabuga Engine Plant in Russia, and the sale of the Kechnec Transmission Plant in Slovakia to Magna. From 24 factories and facilities in Europe now, Ford plans to retain 18 by the end of 2020.
In total, approximately 12,000 jobs will be impacted at Ford's wholly owned facilities and consolidated joint ventures in Europe by the end of 2020, primarily through voluntary separation programs. Around 2,000 of those are salaried positions, which are included among the 7,000 salaried positions Ford is reducing globally.
"Separating employees and closing plants are the hardest decisions we make, and in recognition of the effect on families and communities, we are providing support to ease the impact," said Rowley. "We are grateful for the ongoing consultations with our works councils, trade union partners and elected representatives. Together, we are moving forward and focused on building a long-term sustainable future for our business in Europe."