US automaker Ford Motor plans to drop production of some of its automobile models as part of a planned operational restructuring announced earlier this year, sources told The Times.
The British newspaper reported that Ford planned to end production of Mondeo, Galaxy and S-Max models and focus on more lucrative sport utility vehicles. Ford also plans to cut its number of dealerships, Reuters reported citing The Times.
In July, Ford’s chief executive officer, Jim Hackett, said the company planned to spend around $11 billion on a restructuring of its European business.
Ford lost $73 million in Europe between April and June, and faces additional challenges from Britain’s plans to leave the European Union, the Times said.
Analysts at Morgan Stanley said Ford could lay off as many as 12 per cent of its more than 0.2 million (200,000) workers and that the layoffs would largely be concentrated in Europe.
The Times said Ford’s internal restructuring deliberations would last several more months and may result in folding its European business into a joint venture with a rival.
