Ford revs up plans for commercial vehicle profitability in Europe02 July 2019

Ford says it intends to double its commercial vehicle profitability in Europe in the next five years, as part of a shake-up of its business model.

Effective from 1 July, the new European operating model will have three business groups: commercial vehicles, passenger vehicles and imports.

Each has a dedicated management organisation, including leaders for marketing, manufacturing and product development.

The CV group is led by general manager Hans Schep and is based in Dunton, Essex, which is undergoing site improvements and investment to boost technical skills.

As well as producing the UK’s top selling van, the Transit, Ford is also the top CV brand in Europe – and the company says it intends to increase this lead, including a renewed focus on the pick-up segment.

The CV group growth will be supported by Ford’s strategic alliance with Volkswagen, announced earlier this year, along with a Ford Otosan joint venture in Turkey and a restructured Ford Sollers joint venture in Russia.

“Ford will be a more targeted business in Europe, consistent with the company’s global redesign, generating higher returns through our focus on customer needs and a lean structure,” said Stuart Rowley, president, Ford of Europe.

“Implementing our new strategy quickly enables us to invest and grow our leading commercial vehicle business and provide customers with more electrified vehicles, SUVs, exciting performance derivatives and iconic imported models.”

The new operating model is underpinned by a “broad-based efficiency improvement programme”, according to the company, which will result in 12,000 job losses. The programme includes a proposed reduction of European manufacturing and assembly facilities – from 24 to 18 by the end of next year – including the Bridgend engine plant.

Laura Cork

Related Companies
Ford Motor Co Ltd

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