Ford has recorded an 86 per cent drop in profits for the second quarter of 2019, blaming a significant rework of its European arm.
The Blue Oval has been restructuring its operation in Europe throughout 2019, slashing a whopping 12,000 jobs at wholly-owned and joint-venture operations.
Five of its factories are closing across Wales, France, and Russia, while a Slovakian transmission plant is being sold to Magna. Ford's British and Credit offices have been consolidated into one, management layers have been slashed, and shifts at its plants in Germany and Spain have been cut.
The long-term plan is a 6.0 per cent profit margin in Europe – down from its earlier plan of 8.0 per cent. That plan will see the European business split into three distinct arms, focusing on passenger cars, commercial vehicles and imported vehicles.
According to the Blue Oval, the restructure ate up a whopping $1.7 billion of its profits. Ford is also pouring money into developing electric and autonomous vehicles.
"Midway through this key year of action, we are pleased with the progress we are making toward creating a more dynamic and profitable business," chief executive Jim Hackett said.
"In this time of profound change in our industry, Ford has amazing opportunities to delight customers, innovate and collaborate in new ways, and create value."
Ford shares dipped more than 6.0 per cent on the back of the results.