FRANKFURT – Ford
JLR, based in England, said will cut more than 10% of its workforce. It will slash 4,500 out of 42,500 jobs.
Meanwhile, Ford will cut thousands of jobs in Europe, it announced on Thursday. It will also consider plant closures. In addition, Ford may discontinue some car models.
The ongoing trade war between the US and China, in combination with the pending Brexit, have fragmented markets that were once global. These situations have forced carmakers to reassess the profitability of some locations and individual car models.
Recently, JLR and Ford’s profits lag behind those of fellow carmakers BMW, Volkswagen, and Peugeot. Therefore, investor pressure to stem losses has increased.
JLR stated that China demand fell by 21.6 percent in 2018. China used to be one of JLR’s strongest countries. Furthermore, the drop in demand was the biggest for any of JLR’s markets.
Ford announced that it will leave the family vans segment. It will also review operations in Russia. Finally, it will combine two headquarters into one. Ford U.K. and Ford Credit will be merged to a site in Dunton, Essex. These changes are all part of an effort to achieve a 6 percent operating margin in Europe.
In the third quarter, Ford Europe reported a 245 million euro ($282 million) loss. This figure does not take into account interest and taxes.