Car giant Ford has said it is planning to cut about 12,000 jobs across its European operations by the end of 2020. The carmaker is trying to cut costs and restructure its European business, which is losing money.
It plans to have closed five of its plants by the end of next year, including the Bridgend engine plant in Wales, and it is selling another. Ford, which employs 51,000 people in Europe, hopes to achieve most of the cuts through voluntary redundancy, reports BBC.
The whole car sector is currently struggling to cope with weak or falling demand in major markets, and the huge investments required for the shift towards electric vehicles.
Ford said that of the 12,000 jobs affected, 2,000 were salaried roles, which are among the previously announced 7,000 salaried jobs that are being cut worldwide.
“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 Stuart Rowley, president of Ford of Europe.
“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.”
Ford plans to have shed six manufacturing plants by the end of next year. These include:
The company is also carrying out shift reductions at its assembly plants in Saarlouis, Germany, and Valencia, Spain.
Ford said its European operations would be reorganized, with three “customer-focused” business groups for commercial vehicles, passenger vehicles and imports.
The commercial vehicles business will be based at Dunton in the UK.
The company also said that every new Ford car brand would include an electric option.
“Our future is rooted in electrification,” said Mr 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.”