(October 26, 2012) COLOGNE, Germany — Ford Motor Company has announced more details of its plan to achieve profitable growth in its European operations through an unprecedented focus on new products, a strong brand and increased cost efficiencies.
 
Last month, Ford announced plans to launch an array of new products leveraging Ford’s global portfolio to seize growth opportunities in segments such as large cars, sport utilities and commercial vehicles. In all, Ford plans to introduce 15 global vehicles in Europe within five years.
 
Ford's transformation plan includes actions to increase cost efficiencies including the planned closure of three European facilities, relocating production of key products for a more efficient manufacturing footprint, significantly improved plant utilization and work force reductions. The planned actions will reduce installed vehicle assembly capacity, excluding Russia, by 18 percent or 355,000 units. The related gross annual savings total $450 million to $500 million.
 
The facility actions include the planned closure of two UK facilities next year — Ford’s assembly plant in Southampton, and stamping and tooling operations in Dagenham.

Ford also plans to end production at a major assembly plant in Genk, Belgium, by the end of 2014, pending confirmation following completion of a consultation process with employee representatives. These three facilities currently employ approximately 5,700 hourly and salaried employees.
 
“Using the same One Ford plan that led to strong profitability in North America, we will address the crisis in Europe with a laser focus on new products, a stronger brand and increased cost efficiency,” said Alan Mulally, Ford president and CEO. “We recognize the impact our actions will have on many employees and their families in Europe, and we will work together with all stakeholders during this necessary transformation of our business.”
 
Ford last month detailed an aggressive product acceleration in Europe, leveraging the company’s One Ford global portfolio. Specific product announcements include:
 
    •    Plans to introduce 15 global vehicles in Europe within five years as Europe increasingly benefits from the One Ford global product portfolio
    •    New Fiesta, on sale later this year, redesigned inside and out with new technology offerings,  and sub-100 grams per kilometer with both diesel and petrol powertrains;  also, new Fiesta ST performance version coming next year 

    •    New Mondeo, an all-new version of Ford’s large European car featuring premium design and craftsmanship, and smart technology. The new Mondeo, available with the award-winning 1.0-liter EcoBoost and all-wheel drive, will now be launched in late 2014, if the plans for Genk are confirmed
    •    Expansion in the growing European SUV segment, starting with the all-new Kuga later this year; followed by the EcoSport small SUV within 18 months; and later, Edge, a larger utility vehicle that is popular in other regions 
    •    A complete redesign and expansion of its commercial vehicle range over the next two years, including new Transit, Transit Custom, Transit Connect and Transit Courier – plus a family of new Tourneo people carriers
    •    The Ford Mustang, the iconic American sports car, is coming to Europe
    •    An acceleration of the rollout of new technologies including EcoBoost engines, SYNC in-car connectivity, inflatable rear seat belts, MyKey and other driver assist technologies such as Active Park Assist
 
“The European market holds potential for profitable growth if we accelerate product development and move decisively to address our costs and overcapacity,” said Stephen Odell, chairman and CEO, Ford of Europe. “Even in today’s environment, we are increasing the introduction of new products, leveraging our One Ford global strengths.”