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?
