Ford plans to cut 1,150 jobs in Britain, Unite union says

JLR and Ford prepare for mass job cuts

JLR and Ford prepare for mass job cuts

This is devastating news for the dedicated workers at Ford and their families.

Ford Europe's announcement on layoffs came as Jaguar Land Rover (JLR) announced "substantial' job cuts".

Ford (F) has announced it will cut thousands of jobs as part of a restructuring plan to overhaul its European operations.

The decline is part of a picture which led to JLR's recent posting of a £354m half-year loss.

"We are taking decisive action to transform the Ford business in Europe", Steven Armstrong, group vice president, Europe, Middle East and Africa, said in a statement.

The carmaker has struggled with an ageing model lineup and a contracting market in the UK, Ford's biggest in Europe, which is in store for further disruption from Brexit.

"The economic slowdown in China along with ongoing trade tensions is continuing to influence consumer confidence", said Jaguar Land Rover Chief Commercial Officer Felix Brautigam.

Ford is cutting thousands of jobs, ending production of some models and closing a plant in Europe ahead of a possible alliance with market leader Volkswagen.

"We believe Ford Europe could require as much as a 20 to 30 percent reduction of capacity and headcount", Morgan Stanley analyst Adam Jonas said in a note on Thursday.

It will also review its operations in Russian Federation, and combine the headquarters of Ford UK and Ford Credit to a site in Dunton, Essex.

"We want to be a net contributor of capital and not a net detractor", Armstrong told journalists on a later call, referring to Europe's financial contribution to USA parent Ford Motor. Within the first nine months of 2018, Ford reported a loss of $199 million in Europe versus its $278 million profit in 2017 over the same time period.

Together, the plants employ more than 7,000 people. It lost 354 million pounds between April and September 2018.

Diesel accounts for 90 percent of Jaguar Land Rover's British sales and 45 percent of global demand, the company said a year ago, as demand tumbles following new levies in the wake of the Volkswagen scandal.

Ford a year ago kicked off a company-wide $11-billion restructuring after both Europe and Asia swung to losses and costs to invest in electric and self-driving vehicles mount.

The company is unlikely to develop next-generation diesel engines for smaller vehicles, Armstrong said, explaining that customers have been abandoning the segment more aggressively than anticipated.

"The plan will result in fewer jobs - both hourly and salaried - but it is premature to speculate on how many as we have just begun discussions with our Works Council and union partners", the company said in a statement on Thursday.

"If Brexit went in the wrong direction we would need to take another look to mitigate the impact of that - we will take whatever action is needed".