Report: Ford Targets Europe in Plan to Cut 24,000 Jobs Worldwide

Ford Motor Co. is pondering a plan that would shrink its 202,000-member global workforce by 12%, mostly through reductions in Europe, according to the U.K.’s Sunday Times.

Ford dismisses the estimate as “pure speculation.” But the company acknowledges that its European operation “requires a major redesign” to meet a long-term financial target of 6% margin on earnings before interest and taxes.

Sources tell the newspaper that Ford may decide to trim its dealer network in Europe. They add that the company is likely to realign its product lineup in the region by replacing the slow-selling Mondeo midsize sedan, Galaxy three-row minivan and S-Max MPV with more popular SUV/crossover models. Ford says it will upgrade, not eliminate, the Mondeo.

The newspaper says that the internal review, which won’t be finalized for several months, also may recommend that some or all of Ford’s European operations be merged into a joint venture with another carmaker, such as Volkswagen AG.

Since June, Ford and VW have been developing a nonequity strategic alliance to jointly develop and make light commercial vans and pickup trucks. Thomas Sedran, who was head of VW group strategy at the time, confirms the scheme to Automotive News. Sedran became CEO of VW’s light commercial vehicle operations yesterday.

The two carmakers collaborated in 1995 to make the Ford Galaxy and VW Sharan minivans at their jointly owned AutoEuropa plant in Palmela, Portugal. In 2005 Ford sold its stake in the venture when it moved the Galaxy to the same platform that carries the company’s Mondeo and S-Max.