Ford refuses to be drawn on job cuts

Car giant Ford refused to be drawn today on whether a review of staff costs outside its North American heartland would lead to job cuts in the UK.

Ford said last night that it was “evaluating options for reducing personnel-related costs outside of North America” after warning on profits for the second time in three months.

About 30,000 staff are employed by Ford in the UK making marques such as Jaguar, Aston Martin and Land Rover as part of a Europe-wide workforce of 70,000.

Its automotive and engine plants are located in towns such as Solihull and Castle Bromwich in Birmingham, Coventry, Gaydon in Warwickshire, Halewood on Merseyside and Dagenham in Essex.

A Ford spokesman said today: “If there are actions to be taken in Europe at a later date then we will go into that then".

Fears have grown after Ford said last night that it would cut its North American headcount by 1,700 on top of the 1,000 job losses announced in April.

Vehicle sales are now expected to be so poor in North America that Ford cut its predictions for profits to between one US dollar (55p) and 1.25 US dollars (68p) a share.

This brought it into line with Wall Street which believed the car giant’s earlier forecast of up to 1.50 US dollars (82p) a share was too optimistic and was looking for a figure closer to 1.16 US dollars (63p).

Managers of Ford’s global operations are sharing the pain after being told that they will not receive any bonuses for this year.

Don Leclair, executive vice president and chief financial officer, said the challenges facing the car giant have continued to mount.

He said: “We’re taking steps immediately to reduce further our salaried-related costs this year.

“These are a continuation of a series of actions we plan to take to address our operating challenges.

“We remain committed to improving our cost structure, optimising our global footprint, and making essential investments for the future.”

Ford is not alone in suffering from a downturn in the North American market as General Motors (GM) has also warned on profits this year. It also comes in the year that MG Rover collapsed due to poor sales and crippling debts.

GM – the world’s biggest car maker and owner of the Vauxhall brand – revised its annual targets downwards in April to reflect lower sales and production volumes across the Atlantic, lower prices and a more car-based sales mix.

Surging oil prices have also acted as a deterrent while fears of a global economic downturn are weighing on the confidence of consumers, forcing car firms to offer incentives and promotions to shift existing stock.

Despite launching a range of new vehicles in the past year, Ford and GM have struggled with heavy competition from overseas car makers, particularly Asian brands such as Toyota and Nissan.