Ford Motor prepares to drop production of some of its vehicle models as part of a planned operational restructuring declared earlier this year, sources informed The Times.
The British newspaper reported that Ford prepared to end production of Mondeo, Galaxy and S-Max models and focus on more lucrative sport utility vehicles. Ford further prepares to cut its number of dealerships, the Times noted.
In July, Ford’s chief executive officer, Jim Hackett, stated the automaker planned to invest around $11 billion on a restructuring of its European business.
Ford lost $73 million in Europe between April and June, and faces extra obstacles from Britain’s plans to exit the European Union, the Times stated.
Experts at Morgan Stanley stated the automaker could lay off as many as 12 percent of its over 200,000 workers and that the layoffs would largely be focused in Europe.
The Times stated Ford’s internal restructuring deliberations would last several more months and may lead to folding its European business into a joint venture with a competitor.