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Ford Reorganizing U.S. Business, Layoffs Planned Over Tariffs On China

A few days ago, the headlines were reading that tariffs have cost Ford the mind-boggling sum of $1 billion. The Focus Active is another casualty of the trade war with China, but the extent of the damage doesn’t stop here.
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“Ford will be making cuts to its 70,000-strong white-collar workforce,” according to NBC News. Reversing the fading fortunes of the previous chief executive officer is one thing, but on the other hand, cutting up to 24,000 jobs from the global workforce doesn’t sound like a plan.

When Mark Fields was replaced by James P. Hackett, the board of directors told the newcomer that he has to reduce costs as much as possible. In turn, this spelled the end of the Fiesta and Focus in the United States of America. Ford is also talking with Volkswagen over a partnership to produce commercial and utility vehicles in places as far as India.

The plan is to reduce the number of vehicle architectures from nine to five, with the C2 of the Focus and CD6 of the Explorer regarded as the most important of the list. “The decision is part of Ford's $25.5 billion reorganization plan, which includes slashing $6 billion in improved capital efficiencies.”

Speaking of streamlining operations, Hackett is the man responsible for laying off 12,000 workers as head of furniture maker Steelcase. Turning our attention back to Ford, the focus has shifted to crossovers, SUVs, and electrification solutions of all shapes and sizes.

For example, the 2020 Ford Police Interceptor Utility has been confirmed with standard all-wheel drive, 3.3-liter Ti-VCT V6, and hybrid assistance. Riding on the same platform, the 2020 Lincoln Aviator has been confirmed to receive a plug-in hybrid powertrain option.

Moving away from traditional segments will alienate some of the automaker’s fans, and if there’s a crisis to unfold, Ford will inevitably regret this strategy. General Motors still believes in the three-box sedan and compact hatchback. Fiat Chrysler, on the other hand, has shifted its strategy toward trucks and UVs long before Ford was even considering to cut costs.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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