US car manufacturer Ford is set to make savings of $200m across Europe by cutting jobs and implementing new efficiency measures.
The company announced it is introducing voluntary redundancies, as well as introducing a new manufacturing efficiency plan.
Ford also said it would focus more on the sports utility vehicles (SUVs) and other parts of the business, which are the most profitable, and anticipates killing off less profitable models over time.
For the first time in four years Ford Europe returned a profit, which was $259m as the parent groups saw profits of $10.8bn.
Ford executive vice president, Europe, Middle East and Africa, Jim Farley commented: “In the past three years, Ford of Europe has improved its business in all areas and moved from deep losses to a $259m profit in 2015. This is a good first step.
“We are absolutely committed to accelerating our transformation, taking the necessary actions to create a vibrant business that’s solidly profitable in both good times and down cycles.”
Since 2013 Ford Europe has shut down three plants in Eastern Europe and has also agreed new agreements with workers union groups in Germany in an effort to reduce costs.
Farley continued: “We are creating a far more lean and efficient business that can deliver healthy returns and earn future investment.
“Our job is to make our vehicles as efficiently as possible, spending every dollar in a way that serves customers’ needs and desires, and creating a truly sustainable, customer-focused business.”
The firm has said it will continue to strive for improvement in its manufacturing operations and target efficiencies of seven per cent or more year on year going forward, while also improving the way it utilises its manufacturing capacity.