Ford Accelerates European Transformation
One Ford plan focused on product, brand and costs to drive profitable growth in Europe Unprecedented new product acceleration will bring 15 global vehicles to Europe within five years, delivering a model lineup that is among the region's freshest to drive revenue and margin improvement
Ford is taking actions to strengthen its brand image in Europe, emphasizing class-leading quality, fuel efficiency, safety, smart technology and value
Cost efficiency actions include planned closure of three European facilities, relocating production of key products for improved plant utilization and workforce reductions. Plans would reduce installed vehicle assembly capacity 18 percent or 355,000 units; yields gross annual savings of $450 million to $500 million
Projecting profitability in Europe by mid-decade; targeting long-term operating margin of 6-8 percent; European loss for 2012 expected to exceed $1.5 billion
Overall, excluding special items, total company pre-tax profit and earnings per share for the third quarter are better than the second quarter, despite a substantial loss in Europe; still projecting strong total company full year pre-tax profit with positive Automotive operating-related cash flow
Ford Motor Company today is announcing more details of its plan to achieve profitable growth in its European operations through an unprecedented focus on new products, a strong brand and increased cost efficiencies.
Last month, Ford announced plans to launch an array of new products leveraging Ford's global portfolio to seize growth opportunities in segments such as large cars, sport utilities and commercial vehicles. In all, Ford plans to introduce 15 global vehicles in Europe within five years.
Today, Ford is outlining more about its transformation plan, including actions to increase cost efficiencies. This includes the planned closure of three European facilities, relocating production of key products for a more efficient manufacturing footprint, significantly improved plant utilization and work force reductions. The planned actions will reduce installed vehicle assembly capacity, excluding Russia, by 18 percent or 355,000 units. The related gross annual savings total $450 million to $500 million.
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