Ford to cut more than 5,000 jobs in Germany1 min read . Updated: 16 Mar 2019, 04:40 PM IST
- Ford, based in Dearborn, Michigan, said early this year it would close factories
- Earlier, Ford employs about 54,000 workers in that region
Ford Motor Co. is reducing its German staff by more than 5,000, while cutting an unspecified number of jobs in the UK as part of a large-scale European revamp announced in January.
The US carmaker, which is overhauling its loss-making European business, offered voluntary measures to employees on Friday, it said in an emailed statement. The plans were reported earlier by AFP.
Ford, based in Dearborn, Michigan, said early this year it would close factories, stop making slower-selling models and eliminate thousands of jobs in Europe in a cost-cutting drive. The region, where Ford employs about 54,000 workers, has dragged on earnings, with Brexit uncertainty in the UK especially hurting.
Declining markets and an expensive technology shift are forcing automakers to tighten belts and increase collaboration across the board. BMW AG said on Friday it was abandoning its 3-Series Gran Turismo and might discontinue other low-performing cars, while Audi, which is part of VW, will present a restructuring plan in May that will include trimming back management ranks.
VW may eliminate up to 7,000 jobs at its Wolfsburg headquarters in Germany as part of a 5.9 billion-euro ($6.7 billion) cost-cutting plan. The world’s largest carmaker is also in talks with Ford about collaborating on electric and autonomous cars. The two have announced a cooperation on midsize trucks and delivery vans.
Ford shares were little changed at $8.40 as of 12:13 p.m. in New York.
This story has been published from a wire agency feed without modifications to the text.