Ford and Jaguar Land Rover have announced mass layoffs in Europe


The first announced the removal of 4,500 jobsmore than 10% of cash due to the drop in its activity due to the loss of the reputation of diesel vehicles, the decline in sales in China and the uncertainty of Brexit.

This reduction in cash, published in a company statement owned by the Indian group Tata Motors, will mostly affect the United Kingdom and Austria is part of a wider plan to reduce costs in the amount of 2,500 million pounds ($ 3,200 million, 2,800 million euros) over 18 months.

The group employs 42,500 people in the United Kingdom, the vast majority of the 44,000 people it has around the world.

Prevention, which, according to the British press, will mainly focus on administrative services, will add to the 1500 people who left the group in 2018.

Last spring Jaguar Land Rover decided not to renew thousands of temporary contracts at his factory in Solihull, near Birmingham, in the center of England. At the same time, she announced the relocation of production of her entire field to Slovakia.

The luxury car maker claims to carry out this restructuring in order to cut costs and be more profitableso that they can invest more in electric vehicles. He hopes that all new models will be electric or hybrid from 2020.

According to the BBC, which earlier announced this reduction in jobs, referring to the Group's internal resources, the reductions are the result of a decline in sales in China and diesel vehicles whose reputation suffers from the scandal of engine models, and worries about British competitiveness following Brexit, which is expected at the end of March.

Until from Ford have ensured that they will be cutting thousands of jobs, will leave unprofitable markets and close the runway of deficient vehicles in the context of recovery efforts.

Company reach a 6% rate of return in Europe.

Automotive is under pressure to restructure its business in Europe after its competitor Par Excellence, General Motors GM, increased its profits by selling its European brands Opel and Vauxhall to the French Peugeot SA.

Ford said it will try to step out of the "multivan" segment, stop automatic transmission in Bordeaux in August, review its subsidiaries in Russia and join Ford UK and Ford Credit in downtown Dunton in Essex.

"We are taking decisive action to transform Ford's business in Europe," said Steven Armstrong, Vice President of the Group for Europe, the Middle East and Africa.

Ford Europe, that aCurrently, it employs 53,000 people, had problems with profits, with a loss of EUR 245 million before interest and taxes in the third quarter, which is equal to the negative EBIT margin of 3.3%.

Armstrong refused to quantify the extent of job cuts until negotiations with the trade unions ended, but said that a reduction in the number of employees would affect "thousands" of employees.

The executive director also said that the company was negotiating with workers' representatives about a possible reduction in the number of jobs at its German factory in Saarlouis, where 6,190 employees were compiling cars and that automotive plans to discontinue Ford C-Max production. .


Source link