Ford to abbreviate work to save $200m in Europe

US automobile monster Ford has annunciated arrangements to abbreviate work and save $200m (£138m) a year in EU.

1The automaker said it was commencing a voluntary redundancy programme and improving manufacturing efficiencies. It also said it would focus on its most profitable models, such as sports utility vehicles (SUVs).

Ford Europe returned to profit for the basic date in four years in 2015, as the parent group recorded record profits of $10.8bn. This represented a “good first step”, said Ford EU executive vice-president Jim Farley.

2“We are absolutely committed to accelerating our transformation, taking the necessary actions to create a vibrant business that is solidly profitable in both good times and down cycles.”

The automaker said it would be launching seven new or redesigned vehicles this year, including a Focus RS and new Kuga and Edge SUVs. Ford Europe has closed a number of plants as it struggles to turn around heavy losses. Last year, the company made an operating profit of $259m in EU, compared with a loss of $598m in 2014.