Ford has already announced a wave of cost reductions this year, including job losses for British workers, in an attempt to return its European sector to profit. The car maker wants to save around £471million ($600million) per year after its global market share fell to 5.9 percent from 6.5 percent. Despite posting better-than-expected first quarter figures, Ford this month lost ground in every major market except North America. Ford posted a quarterly net profit of $1.15 billion or 29 cents per share, down 34 percent from $1.74 billion or 43 cents per share a year earlier.
The car giant reported revenue of $40.3 billion for the quarter, down 4 percent from $42 billion a year earlier.
The auto industry has been facing turbulence from falling global demand and investment, partly off the back of the increasingly bitter United States-China trade war and political uncertainty from Brexit.
As part of a restructure of its European business, Ford is closing down three plants in Russia, as well as a factory in France and Wales.
The company is also poised to cut shifts at factories in Valencia, Spain and Saarlouis, Germany.
Ford’s manufacturing footprint will be reduced from 24 facilities, down to 18, by the end of 2020.
Around 12,000 jobs will be affected, although the company hopes most of the losses will come through voluntary redundancies.
Of this figure, 2,000 of those affected are fixed salaried positions, which are included among the 7,000 jobs Ford is getting rid of globally.
The rest are workers on hourly contracts or agency workers.
According to Sky News, the job cuts were not in addition to those already earmarked for the UK, with Ford already announcing the closure of its Bridgend factory in South Wales.
This will result in 1,700 members of staff losing their jobs.
Ford will also close its British headquarters in Warley in Essex, and consolidate operations at its site in Dunton, also in Essex, taking the total job losses to 3,100.
Ford has 51,000 employees in Europe.
Ford said it intended to double the profitability of its commercial vehicle business in Europe in the next five years, supported by a restructured Ford Sollers joint venture in Russia and a strategic alliance with Volkswagen.
Ford also said it expected to triple passenger car imports into Europe by 2024 by selling Mustang and Explorer vehicles, including a Mustang-inspired electric car in late 2020.