Struggling in the European car market, the Ford Motor company is now offering severance pay to 'a few hundred' white collar Euro workers.
The company announced that it expected to lose more than 1 billion dollars in Europe this year as it struggles to make up the costs of its plunging vehicle sales. Although the severance pay appears negative, this is in part-plan to push for greater efficiencies in all areas of Ford - in regards to European business.
In the statement released on Tuesday they said that Ford will offer buyouts to employees and cut spending on contract workers. In turn this shall reduce personal costs.
With the over all European economy crisis, peers of Ford have also been suffering. The overall industry has fallen 8.5% in sales, leaving Ford's European vehicle sales plunging a massive 29% percent in August.
In the statement released on Tuesday they said that Ford will offer buyouts to employees and cut spending on contract workers. In turn this shall reduce personal costs.
With the over all European economy crisis, peers of Ford have also been suffering. The overall industry has fallen 8.5% in sales, leaving Ford's European vehicle sales plunging a massive 29% percent in August.
In an attempt to attract new buyers the company is also cutting costs in the region in order to revamp its line-up.
Alan Mulally who is Chief Executive of Ford in Europe said:
"There is a tremendous decrease in demand, but we're absolutely committed to Europe,"
And then added
"That will involve some restructuring."
It will be interesting to see how Ford's plans work out.
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