September 2, 2018 / 8:08 PM / 18 days ago

Ford to cut car models as part of restructuring: The Times

(Reuters) - U.S. automaker Ford Motor Co (F.N) plans to drop production of some of its automobile models as part of a planned operational restructuring announced earlier this year, sources told The Times.

The Ford logo is pictured on the company's stand during the 88th Geneva International Motor Show in Geneva, Switzerland, March 7, 2018. REUTERS/Denis Balibouse

The British newspaper reported that Ford planned to end production of Mondeo, Galaxy and S-Max models and focus on more lucrative sport utility vehicles. Ford also plans to cut its number of dealerships, the Times said.

In July, Ford’s chief executive officer, Jim Hackett, said the company planned to spend around $11 billion on a restructuring of its European business.

Ford lost $73 million in Europe between April and June, and faces additional challenges from Britain’s plans to leave the European Union, the Times said.

Analysts at Morgan Stanley said Ford could lay off as many as 12 percent of its more than 200,000 workers and that the layoffs would largely be concentrated in Europe.

The Times said Ford’s internal restructuring deliberations would last several more months and may result in folding its European business into a joint venture with a rival.

Reporting by Carl O'Donnell in New York; Editing by Peter Cooney

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