Ford continues to struggle, posting losses in moribund European economies, and – surprisingly – growth markets of Asia Pacific and Africa. Joe Hinrichs, above, president of Global Operations, has Manufacturing, Labor Affairs and Customer Service. He is going to be busy with Works Councils and unions.
Ford Motor is starting consultations – or confrontations – with its unions and other stakeholders to implement “a comprehensive transformation strategy aimed at strengthening the Ford brand and creating a sustainably profitable business in Europe.”
Near term, Ford Motor is cutting costs by a reduction of surplus labor across all functions – salaried and hourly. A change in management structure announced in December is underway through Ford’s hoeing operations and weeding its global salaried workforce. A Volkswagen hookup appears immanent.
Ford Motor’s Corporate Q3 results were disastrous:
The latest turnaround strategy is part of the company’s wish to sell “differentiated vehicles designed to create a deeper connection with Ford customers.”
In parallel, the overhaul will include changes to Ford’s vehicle lineup, expanding offerings and volumes in its most profitable growth segments, while improving or exiting less profitable vehicle lines and addressing under-performing markets.
Doomed Plants and Businesses?
- Production at the Ford Aquitaine Industries plant in Bordeaux, France, which manufactures small automatic transmissions, will end in August 2019.
- Formal discussions have begun between Ford and its Works Council to end production of the C-MAX and Grand C-MAX at the Saarlouis Body and Assembly Plant in Germany as the compact MPV segment shrinks in Europe.
- A strategic review of Ford Sollers, its joint venture in Russia. Several restructuring options for Ford Sollers are being considered by Ford and its partner, Sollers PJSC. A decision is expected in Q2 2019.
- Consolidation of its UK headquarters and Ford Credit Europe’s headquarters at Ford Dunton Technical Center in South East Essex. The action is subject to union consultation and local approvals.
Future Business Groups
Ford is establishing three business groups in Europe – Commercial Vehicles, Passenger Vehicles, and Imports – each with dedicated organizations.
Ford of Europe is targeting a 6% EBIT margin longer term, with returns in excess of the cost of capital for each business group.
Ford Motor’s Q3 results were disastrous. Once again top Ford executives claimed they had a multi-year plan to fix things, but that same pledge has been made since Ford 2000. Ford also said that because of the higher costs and uncertainty impacting the entire sector, coupled with unexpected deterioration this year in the Europe, Middle East and Africa, and China businesses, current company forecasts show that it will not reach its previously announced 8% EBIT margin or high teens ROIC targets by 2020. No wonder another job-destroying reorganization in process.
Commercial Vehicles: Ford will continue to enhance its commercial vehicle leadership in Europe with a tightly integrated offering of smart vehicles, services and partnerships that deliver lifetime value for commercial customers. Already highly profitable, Ford is Europe’s No. 1 commercial vehicle brand in terms of sales volume, and more than one in four Ford vehicles sold today in Europe is a commercial vehicle.
In line with Ford’s global fitness approach to build, partner or buy, Ford of Europe will leverage relationships – such as the successful Ford Otosan joint venture and the potential alliance with Volkswagen AG – to support its commercial vehicle growth.
Passenger Vehicles: Ford will establish a more targeted portfolio of European-built passenger vehicles focused on the quality, technology-rich and fun-to-drive DNA of the Ford brand, with the goal of building emotional connections with customers through sporty and progressive designs.
Every Ford nameplate from the all-new Ford Focus onward will include an electrified option. This includes new nameplates and new versions of existing vehicles. From Fiesta to Transit, either a mild-hybrid, full-hybrid, plug-in hybrid or full battery electric option will be offered, delivering one of the most encompassing line-ups of electrified options for European customers.
Ford also will build on its success in the growing utility segment in Europe. Ford SUV sales – comprising EcoSport, Kuga and Edge – hit a record high in 2018, surpassing a quarter million vehicles sold for the first time.
Imported Vehicles: A niche portfolio of imported nameplates for Europe that builds on the heritage of the Ford brand will include Mustang, Edge, and another SUV to be revealed in April, along with an all-new Mustang-inspired full-electric performance utility in 2020.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Ford to Restructure European Business Once Again
Ford continues to struggle, posting losses in moribund European economies, and – surprisingly – growth markets of Asia Pacific and Africa. Joe Hinrichs, above, president of Global Operations, has Manufacturing, Labor Affairs and Customer Service. He is going to be busy with Works Councils and unions.
Ford Motor is starting consultations – or confrontations – with its unions and other stakeholders to implement “a comprehensive transformation strategy aimed at strengthening the Ford brand and creating a sustainably profitable business in Europe.”
Near term, Ford Motor is cutting costs by a reduction of surplus labor across all functions – salaried and hourly. A change in management structure announced in December is underway through Ford’s hoeing operations and weeding its global salaried workforce. A Volkswagen hookup appears immanent.
Ford Motor’s Corporate Q3 results were disastrous:
The latest turnaround strategy is part of the company’s wish to sell “differentiated vehicles designed to create a deeper connection with Ford customers.”
In parallel, the overhaul will include changes to Ford’s vehicle lineup, expanding offerings and volumes in its most profitable growth segments, while improving or exiting less profitable vehicle lines and addressing under-performing markets.
Doomed Plants and Businesses?
Future Business Groups
Ford is establishing three business groups in Europe – Commercial Vehicles, Passenger Vehicles, and Imports – each with dedicated organizations.
Ford of Europe is targeting a 6% EBIT margin longer term, with returns in excess of the cost of capital for each business group.
Ford Motor’s Q3 results were disastrous. Once again top Ford executives claimed they had a multi-year plan to fix things, but that same pledge has been made since Ford 2000. Ford also said that because of the higher costs and uncertainty impacting the entire sector, coupled with unexpected deterioration this year in the Europe, Middle East and Africa, and China businesses, current company forecasts show that it will not reach its previously announced 8% EBIT margin or high teens ROIC targets by 2020. No wonder another job-destroying reorganization in process.
Commercial Vehicles: Ford will continue to enhance its commercial vehicle leadership in Europe with a tightly integrated offering of smart vehicles, services and partnerships that deliver lifetime value for commercial customers. Already highly profitable, Ford is Europe’s No. 1 commercial vehicle brand in terms of sales volume, and more than one in four Ford vehicles sold today in Europe is a commercial vehicle.
In line with Ford’s global fitness approach to build, partner or buy, Ford of Europe will leverage relationships – such as the successful Ford Otosan joint venture and the potential alliance with Volkswagen AG – to support its commercial vehicle growth.
Passenger Vehicles: Ford will establish a more targeted portfolio of European-built passenger vehicles focused on the quality, technology-rich and fun-to-drive DNA of the Ford brand, with the goal of building emotional connections with customers through sporty and progressive designs.
Every Ford nameplate from the all-new Ford Focus onward will include an electrified option. This includes new nameplates and new versions of existing vehicles. From Fiesta to Transit, either a mild-hybrid, full-hybrid, plug-in hybrid or full battery electric option will be offered, delivering one of the most encompassing line-ups of electrified options for European customers.
Ford also will build on its success in the growing utility segment in Europe. Ford SUV sales – comprising EcoSport, Kuga and Edge – hit a record high in 2018, surpassing a quarter million vehicles sold for the first time.
Imported Vehicles: A niche portfolio of imported nameplates for Europe that builds on the heritage of the Ford brand will include Mustang, Edge, and another SUV to be revealed in April, along with an all-new Mustang-inspired full-electric performance utility in 2020.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.