Jump to content
Create New...
  • William Maley
    William Maley

    Ford's Europe Branch To Restructure Further, Drop Models

      Ford Announces Another Overhaul for the European Branch


    Ford's European branch has had a tough time with three years of losses and making some drastic changes, including closing three factories back in 2013. But 2015 saw the branch make a $259 million profit. The blue oval wants to continue that with a new restructure strategy.

     

    The strategy includes a "voluntary separation" program that will allow workers to leave Ford at their own behest. Ford says this will save around $200 million per year in reduced staffing costs.

     

    Ford will also be eliminating less profitable models” from its product lineup. What models those might be are unknown at this time. It should be noted this elimination will not affect plans to launch seven new or refreshed models this year. Other additions for Ford's Europe lineup include,

    • Five crossovers/SUVs in the next three years
    • Four more vehicles with the Vignale luxury trim
    • Expansion of the electric and hybrid lineup


    “In the past three years, Ford of Europe has improved its business in all areas and moved from deep losses to a $259 million profit in 2015. This is a good first step. We are absolutely committed to accelerating our transformation, taking the necessary actions to create a vibrant business that’s solidly profitable in both good times and down cycles,” said Jim Farley, Ford executive vice president, Europe, Middle East and Africa.

     

    Source: Ford

     

    Press Release is on Page 2


     

    FORD ACCELERATES TRANSFORMATION PLAN IN EUROPE TO BUILD VIBRANT AND SUSTAINABLY PROFITABLE BUSINESS

    • After returning to profit in 2015, Ford of Europe is accelerating its plan to deliver a vibrant and sustainably profitable business targeting higher profit and pre-tax operating margin in 2016 and 6 to 8 percent operating margin in the longer termRefocusing product strategy to add new vehicles and derivatives in segments with the highest growth and profit potential such as crossovers and SUVs, and eliminating less profitable vehicles over time
    • Launching seven new or freshened vehicles in 2016 including Focus RS and new Kuga and Edge SUVs; further enhancing Ford’s brand image in Europe through increased experiential marketing and best-in-class dealer experienceReducing costs in all areas to lower breakeven, help offset rising regulatory costs and invest in Ford Smart Mobility; voluntary separation program announced today to achieve ongoing administrative and selling expense savings of $200 million annually
    • Targeting annual manufacturing efficiencies of more than 7 percent and improved capacity utilizationIdentifying new revenue streams through Ford Smart Mobility, including customer loyalty, multi-modal transport services, fleet services and ride services


    Ford Motor Company is accelerating its transformation in Europe – including new product, brand and efficiency actions – to deliver improved profits in 2016 and a 6-8 percent operating margin for Ford of Europe in the longer term.

     

    Ford’s European strategy calls for a more streamlined and profitable product line; more emotional and experiential brand communications; and a leaner cost structure to lower breakeven and help offset growing regulatory costs.
    “In the past three years, Ford of Europe has improved its business in all areas and moved from deep losses to a $259 million profit in 2015. This is a good first step,” said Jim Farley, Ford executive vice president, Europe, Middle East and Africa. “We are absolutely committed to accelerating our transformation, taking the necessary actions to create a vibrant business that’s solidly profitable in both good times and down cycles.”
    After closing three manufacturing plants in Western Europe since 2013 and reaching an innovative cost-saving agreement with labour unions in Germany, Ford of Europe continues to enhance its cost efficiency and manufacturing capacity utilization.
    Ford today initiated a voluntary separation program in Europe supporting a significant reduction in administrative and selling costs to reach industry benchmark levels of efficiency. With the move, Ford of Europe expects to save about $200 million a year on an ongoing basis.

     

    “We are creating a far more lean and efficient business that can deliver healthy returns and earn future investment,” Farley said. “Our job is to make our vehicles as efficiently as possible, spending every dollar in a way that serves customers’ needs and desires, and creating a truly sustainable, customer-focused business.”

     

    Ford of Europe said it would continue to drive improvements in its manufacturing operations, targeting efficiencies of greater than 7 percent year-over-year going forward, and improving its manufacturing capacity utilization.

     

    Product surge
    After launching more than 30 new and refreshed vehicles since late 2012, and increasing market share in each of the past two years and boosting sales 10 percent in 2015, Ford of Europe will continue to strengthen its vehicle line with plans to:

    • Launch seven new and refreshed vehicles in 2016, including the Focus RS performance hatch and the new Kuga and Edge SUVs. Streamline core model line-up to eliminate less profitable vehicle lines over time
    • Launch five new vehicles to compete in the SUV and crossover space in the next three years, starting with new Edge in the second quarter. SUVs remain Europe’s fastest-growing market segment, and Ford expects to surpass 200,000 SUV sales in Europe for the first time in 2016 – a growth of more than 30 percent compared with 2015
    • With the launch of Focus RS, joining Focus ST, Fiesta ST and Mustang, Ford of Europe expects record performance car sales in Europe in 2016 of about 40,000 vehicles
    • Expand upscale Vignale line and customer experience from one model today – Mondeo Vignale – to at least five Vignale models by 2017
    • Introduce new plug-in hybrid, hybrid-electric and full electric vehicles in Europe by 2020 – part of Ford’s previously announced $4.5 billion investment in electrified vehicle solutions
    • Ford this year will offer eight vehicle lines in Europe with sophisticated all-wheel drive or four-wheel drive technologies, compared to three models in 2012. Ford expects to sell about 140,000 all-wheel drive and four-wheel drive vehicles in Europe in 2016 – a 120 percent increase compared to 2014
    • Continue to invest in and strengthen Europe’s best-selling line-up of commercial vehicles, including new powertrain and technologies for Transit Custom and Transit
    • 2-tonne, and a freshened Ranger – Europe’s No.1 top-selling pickup for 2015


    “We are creating a more exciting and distinctive Ford line-up in Europe,” Farley said. “When we play to our strengths, we can compete and win in Europe – even against premium brands.”

     


    Strengthening the brand
    Building on its improving brand image in Europe, Ford plans to reach new customers through its exciting new products, increased experiential marketing and best-in-class dealer and customer experience with the completion of 500 new, state-of-the-art flagship FordStores in major urban areas.

     

    Ford is identifying opportunities for new revenue streams in Europe – recurring and potentially higher margin – as part of Ford Smart Mobility. Key areas of focus include customer loyalty, multi-modal transport services, fleet services and ride services.
    As an initial step in January, Ford unveiled FordPass – a platform that reimagines the relationship between automaker and consumer. FordPass members can talk to a personal mobility assistant to help with travel arrangements, reserve and pay for advance parking, earn loyalty points, schedule service and much more. FordPass launches in Europe later this year.

     

    FordPass also includes the opening of FordHubs, where consumers will be able to explore Ford’s latest innovations, learn about its mobility services, and experience exclusive events, with the first FordHub in Europe opening in London this year.

     

    “We are investing in Ford Smart Mobility, which will deepen our customer relationships and reduce our conquest marketing costs,” said Roelant de Waard, vice president, Marketing, Sales and Service, Ford of Europe. “There is a huge opportunity in Europe to give our customers what they want, sometimes before they even know it, by anticipating their needs through data and data analytics.”


    User Feedback

    Recommended Comments

    There are no comments to display.



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • Those that cannot accept a multi-cultural world and immigration deserve to lose everything. I will stay professional, but believe that our North American Economy is about to get far worse over the long term than it is now. It is amazing how people do not seem to realize that the first two years of a new president is dealing with the ramifications of the last president. The high inflation was due to the failed policies of those before. We now have low unemployment and a strong economy. Will be interesting to see how it ends.
    • I say, let it get worse.  The people have spoken and this is what the MAJORITY voted for.  He even got the popular vote.  Therefore the people of America have spoken.   This is what they want.  This is what they feel comfortable with.   But I dont want to hear ANY whining from ANYBODY about what possibly may happen with him Him in power.  Fool me once,  shame on you!  Fool me twice, shame on me?   Technically this is how that saying goes.  But you never know. Maybe it really IS the lefty libtards that are the problem.   Hopefully it IS the lefty libtards that are the problem and the Messiah Trump will BE the solution to ALL of our problems.   I will be the first one to apologize if He actually does fix America's and Canada's problems.  And unite ALL of the world and the world gets to sing Kumbaya ALL in unison. Hopefully He is the next coming of Christ.   Keeping my fingers crossed but I aint holding my breath if you know what I mean.   
    • @oldshurst442 This pretty much sums up just how bad it is going to get. Trump's economic plans would worsen inflation, experts say | AP News
    • Not just iPhones... He tariffed Canadian wood the first time around as Pres and the prices of wood skyrocketed so American home builders bought American wood which was and is more expensive than Canadian wood.  I guess that is good for American wood producers. But for the fact that house prices also skyrocketed.  And considering that Canada and US have a more or less good trading thing going on...so not that good.  Not for the US and not good for Canada.  But Donald thinks otherwise. And all the folk that voted for him this time around think that the economy will get better?  I hope so for their sake. But Elon and Jeff B's billions rose quite a bit upon the announcement of his re-election.  I wonder if those  people that voted for him, I wonder if their wealth also rose instantly?    You poor bastards... You have no idea what is coming to you... (those that voted for him.  With the excemption of the rich of course)     Donnie Rides Again
  • Who's Online (See full list)

    • There are no registered users currently online
  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search