Ford to Cutting European Jobs
Ford Motor Company has announced that it plans to cut around one in nine jobs in Europe, with 3,800 roles being axed in product development and administration. The move is part of the automaker’s drive to lower costs in the region and concentrate engineering know-how in the United States. The company, which leads the European market for commercial vans, has struggled to make strong profits from passenger cars and has warned that it would be “very aggressive” in reducing manufacturing and supply chain expenses this year. Ford CEO Jim Farley has repeatedly flagged that electric vehicle production would require less labour and significant cost-cutting to remain competitive.
Around 2,300 jobs will go at Ford’s Cologne and Aachen sites in Germany, 1,300 in the UK, and 200 in the rest of Europe, with the company intending to achieve the reductions through voluntary programmes. Unions said in late January that the worst-case scenario was 2,500 job cuts in Europe in product development and a further 700 in administration.
Ford, which saw 516,614 new passenger cars registered in Europe last year with a market share of 4.6%, is planning an ambitious ramp up of electric vehicle sales in Europe, targeting over 600,000 by 2026. So far, it sells two all-electric SUVs in the region and an e-Transit van, but seven new models are in the pipeline by 2024, including two produced in Cologne and one in Romania.
Ford is spending $50 billion on electrifying its product range, pivoting to a slimmer lineup with higher prices to compensate for the rising costs of producing electric cars. The company will retain around 3,400 engineers in the region who will build on core technology provided by their U.S. counterparts and adapt it to European customers. Nothing has changed in the carmaker’s electrification strategy, with the goal of offering an all-electric passenger car lineup by 2030 and an all-electric fleet in Europe by 2035 still in place.
Ford Stock Price Forecast & Analysis
This excerpt is discussing the stock forecasts for Ford Motor Company. The forecasts are based on the analysis of 13 analysts, who have an average target price of USD 14.38 for the stock over the next 12 months. The average analyst rating for Ford Motor Company is “Buy”.
However, Stock Target Advisor’s analysis of the stock is “Neutral”, based on 5 positive signals and 6 negative signals. This means that while the average analyst rating is positive, there are also some mixed signals about the stock.
The last closing stock price for Ford Motor Company was USD 13.09, which has changed by -0.38% over the past week, +2.91% over the past month, and -25.41% over the last year. These changes in the stock price indicate some volatility in the market and uncertainty about the company’s future performance.