Ford (NYSE:F) said it will cut 12,000 jobs in Europe by 2020 to return its business back to profit.
The carmaker said it has ceased production at three plants in Russia, is closing plants in France and Wales, and has cut shifts at factories in Valencia, Spain and Saarlouis, Germany.
Approximately 12,000 jobs will be impacted at Ford’s wholly owned facilities and consolidated joint ventures in Europe by the end of 2020, primarily through voluntary separation programs.
The challenge of investing in electric, hybrid and autonomous vehicles while having to overhaul combustion engines to meet new clean-air rules, has forced Europe’s carmakers to slash fixed costs and streamline their model portfolios.
The company will release its second quarter U.S. sales results Wednesday, July 3
In June, Ford was the target of a class-action lawsuit alleging that Ford overstated fuel economy ratings for certain vehicles model years 2017 to 2019, including the Ford Ranger and F-150 trucks. The complaint alleges that Ford manipulated fuel economy testing to procure higher fuel economy results.
Consumers who purchased these vehicles are paying more in fuel costs than the indicated miles per gallon disclosed by Ford at the point of sale.
Plaintiffs have retained experts who have tested a Ford vehicle. The proprietary investigation of counsel and testing by plaintiffs' experts revealed that Ford deliberately manipulated testing parameters used to derive the "road load" calculation, which is used in fuel economy testing.
Road load refers to the sum of forces acting on a vehicle, including aerodynamic drag, friction, and tire-related losses.
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