Ford Motor Co. could discontinue production of its Mondeo, Galaxy and S-Max models to focus on more lucrative sport utility vehicles as the company tries to improve its dwindling European operations, The Times reported Sept. 2, citing sources.
According to the report, the plan is part of the Dearborn, Mich.-based automaker's plan to restructure underperforming parts of its business. Ford, whose European operations have been hit by falling diesel sales and a weak vehicle lineup, has reportedly lost $73 million in the region from April to June amid added uncertainty from Brexit.
The British newspaper said the car company also plans to cut a number of dealerships. Ford has 41 dealerships and 463 franchised outlets in the U.K., the Times reported.
In addition, the Times said analysts at Morgan Stanley believe the automaker could slash up to 12% or 24,000 of its 202,000 employees worldwide, with the largest layoffs expected across Europe. Ford reportedly has around 12,000 workers in the U.K.
The Times added that Ford's review of its business could also advocate for turning all or some of its European business into a joint venture with a rival.