Ford Launches Restructuring Plan in Europe

Ford Motor Co. has begun its overhaul of European operations with a new org chart, bevy of executive appointments and a goal of dropping unprofitable models.

The moves are part of the $14 billion cost-cutting and streamlining strategy unveiled by Ford CEO Jim Hackett 15 months ago. At the time, Hackett declared to investors that he felt a “real sense of urgency” to reform the carmaker.

The Ford of Europe goals are to hike the unit’s profit margin before interest and taxes to 6%. The initiative, awkwardly dubbed “Sprint to 6 Reset & Redesign,” will focus on Ford’s two largest markets in Europe: Germany and the U.K.

The restructuring efforts in those countries will be led by two executive directors of business transformation. Gunnar Herrmann, former head of quality for Ford of Europe, will oversee the initiative in Germany. Graham Hoare, former head of global vehicle evaluation and verification, will do the same in the U.K.

Ford says the objective for both men will be to streamline their organizations and review all operations to identify those vehicles, services and market segments that “best support a long-term, sustainably profitable business.” Both executives will report to Steven Armstrong, Ford president of Europe, Middle East and Africa.

Herrmann’s previous assignment as head of quality will go to Lee Walker, who has directed new model programs for Ford of Europe for three years. Hoare’s previous job has been assigned to Andrew Brumley, whose new title is chief engineer for Ford of Europe’s vehicle evaluation and verification operations.

Separately, Kevin Reynolds will retire as director of strategy for Ford of Europe at the end of this month. Reynolds joined Ford more than 40 years ago and held a variety of financial posts in Europe and the U.S.