After Ford's European operations reported a $472 million loss, Ford Chairman Alex Trotman has demanded an exhaustive review of what's gone wrong. Look for drastic cost-cutting, including substantial staff cuts, say analysts. The bulk of the problem seems to stem from a 46%. nosedive in sales of the Scorpio, the full-size sedan that competes with Opel Omega, Rover 800, Peugeot 605 and Renault Safrane. Its entry level cars, such as Fiesta, Escort and the new Spanish-built Ka, are holding their own, but because Ford lacks a manufacturing base in lower-cost areas of eastern Europe, the profit margins are non-existent or razor thin. "We need to restructure. We need to reduce our costs," says David McCammon, vice president of finance. Isn't that what Ford 2000 is all about?
After Ford's European operations reported a $472 million loss, Ford Chairman Alex Trotman has demanded an exhaustive review of what's gone wrong. Look for drastic cost-cutting, including substantial staff cuts, say analysts. The bulk of the problem seems to stem from a 46%. nosedive in sales of the Scorpio, the full-size sedan that competes with Opel Omega, Rover 800, Peugeot 605 and Renault Safrane.
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