Ford Launches its New Business Model in Europe

Ford has recently reported about the start of a new business model and a new family of cars within the framework of the largest company’s restructuring of business processes in Europe. The American Auto Giant plans to bring a vast improvement in its financial performance in Europe this year, creating a basis for achieving stable economic viability and its objective of providing a 6% EBIT margin.

Ford representatives say that the company’s policy in Europe will become more result-oriented, allowing to get more profits thanks to paying more attention to customer needs and more rational structure. The new European business model came into play in July. The company has founded 3 divisions: Commercial Vehicles, Passenger Cars, and Import Operations. Each division will have executive authorities, as well as specialists responsible for all operations related to future products.

Ford also updates and expands its product portfolio, preparing to release at least 3 new models in the next 5 years. It is expected that Ford will reinforce its SUV family and upgrade hybrid versions of several models. The automaker is also determined to implement an improved system of fuel efficiency and to reduce CO2 emissions thanks to improvements in standard powertrain solutions and through enhanced use of hybrid and electric engines.

News report related to massive staff cuts in Europe

Moreover, Ford plans to close or sell 6 plants in Europe specialized in production of powertrain components (engines and transmissions). The restructuring of production will also lead to significant staff reductions. Approximately 12 thousand Ford employees (about 20% of all workforce in Europe) will lose their jobs by the end of next year.