Ford (F) Announces Layoff of 1,100 Employees From Spain
Ford Motor F announced plans to slash 1,100 jobs in Valencia, Spain. The company plans to discontinue the production of the S-Max and Galaxy in its plant at Valencia in April to shift its focus toward the profitable SUV and van segments. This shift in the production lineup is cited as a reason for job cuts by the company’s spokesperson.
"Ford will work constructively with its union partners to reduce the impact of the separations on employees, their families and the local community," the spokesperson added.
Ford currently builds the Kuga compact SUV and Transit Connect compact van in Valencia after winding up the production of the Mondeo midsize car in Valencia, last year.
Last month, Ford announced the layoff of 3,800 out of 34,000 employees in Europe in the next three years. Per this plan, the auto manufacturer announced the layoff of 2,300 employees in Germany, 1,300 employees in the United Kingdom and 200 employees in the rest of Europe to achieve a competitive cost structure. Those cuts were aimed at the production, development and administration departments and not the manufacturing positions.
Like other auto manufacturers, Ford wants to shift its focus toward building BEVs (battery electric vehicles), which require massive amounts of investment in developing technology.
Ford plans to unleash a full-electric vehicle for Europe later this month. The production of the model will start in Ford’s factory in Cologne, Germany. The production of EV will replace the production of Fiesta cars in Cologne.
Ford is also planning to discontinue the production of the Focus compact car in 2025 in its factory at Saarlouis, Germany and is looking for a factory buyer. Last year, Ford discussed its plan to build next-generation EVs in Valencia and said it will start the production of the vehicles later this decade.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #4 (Sell).
A few top-ranked players in the auto space include Volvo VLVLY, Wabash National WNC and Modine Manufacturing MOD, all of which sport a Zacks Rank #1 (Strong Buy).
The Volvo Group is a manufacturer of trucks, buses, construction equipment, diesel engines and marine and industrial engines. The Zacks Consensus Estimate for VLVLY’s 2023 earnings imply year-over-year growth of 6.25%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimates for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 28.89%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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