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Struggling with a sagging stock price and sluggish sales, US car giant Ford took steps to regain its footing this week with the announcement of a massive restructuring effort in Europe—even as it prepared for an imminent strategic partnership with German carmaker Volkswagen.
The iconic American brand will roll out a major reorganization of its European operations to boost profitability, including thousands of potential job cuts.
Alliance - VW - Week - Car - Technologies
It was also poised to announce a major alliance with VW next week, as it races to catch up in autonomous and electric car technologies.
Ford, which employs 200,000 people worldwide and brought in nearly $146 billion in revenue in 2017, has previously said it wants to cut costs by about $25.5 billion by 2022.
Analysts - Jobs - Threat
According to analysts, 24,000 jobs are under threat.
Ford already stopped producing sedans and small cars to save $11 billion in the US—and it might also scrap the Fiesta, Focus and Mondeo models in Europe, where they are popular.
Cost - Cutting - Shuttering - US - Factories
Additional cost cutting could include the shuttering of underused US factories, according to Morgan Stanley analyst Adam Jonas, despite President Donald Trump's public pressure on auto makers to maintain their US workforces.
It could also hit China and Latin America, two markets where Ford is struggling, a source familiar with the plans told AFP.
Cuts - Ford - Operations
In total, the cuts could save Ford $14 billion in its international operations.
"This is not about making the business today more efficient, but completely redesigning it,"said Steve Armstrong, Ford's chief of Europe, Middle East and Africa operations.
Ford - Transformation - Push - Time - Sector
Ford's transformation push comes at a time when the automotive sector is undergoing major changes as a result of the development of new technologies—accelerated by disenchantment over diesel engines.
Autonomous and electric vehicles have been expensive to develop, and require either new factories or a complete modernization of existing ones.
Ford - Rest
Ford has been facing the same headwinds as the rest...
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