Ford Motor launches layoff program for Brazil’s Camacari plant

Ford previously said the plant was operating with about 700 excess workers. The plant employs 7,400 people in Camaçari, where it produces the compact Ka and mid-sized EcoSport SUV.

Last Updated : Apr 10, 2019 08:13 AM IST | Source: Reuters

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The Brazilian unit of Ford Motor Company said it was initiating a voluntary layoff program for its plant in Camaçari, in the northeast state of Bahia, with the objective to cut workforce it said was in excess of current needs.

The company in its statement did not say how many people it expected to lay off.

Ford previously said the plant was operating with about 700 excess workers. The plant employs 7,400 people in Camaçari, where it produces the compact Ka and mid-sized EcoSport SUV.

The U.S. automaker said two months ago it would close its oldest plant in Brazil, in São Bernardo do Campo, which could cost more than 2,700 jobs as part of a restructuring meant to end losses around the world.

Referring to the Bahia plant, Ford said: “The measure has the objective to align the plant’s workforce with current market demand.”

Ford sold 24,000 Ka vehicles in Brazil in the first quarter, about the same level as in the previous year. It sold 7,600 EcoSports, more than the 7,000 reported in the first quarter of 2018.

Source MoneyControl

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Nissan and Renault retooled board structure of the world’s largest alliance

Japan’s Nissan Motor and France’s Renault retooled the board structure of the world’s largest car-making alliance and there would be no change to junior partner Mitsubishi Motors cross-shareholding agreements.

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Japan’s Nissan Motor and France’s Renault on Tuesday retooled the board structure of the world’s largest car-making alliance, putting themselves as equals after the ouster of former boss Carlos Ghosn.

They said the chairman of Renault would serve as the chairman of the alliance but — in a critical sign of the rebalancing —not as chairman of Nissan. It was not immediately clear who would take that job, vacant since Ghosn was arrested in November.

The ouster of Ghosn, one of the world’s most celebrated executives for his rescue of Nissan from near-bankruptcy in 1999, had caused much soul-searching about the future of the alliance. Nissan has said the executive wielded far too much power, creating a lack of oversight and corporate governance.

“This is an equal partnership,” Nissan Chief Executive Hiroto Saikawa told a news conference.

But the companies, including junior partner Mitsubishi Motors, said there would be no change to their cross-shareholding agreements. The so-called “RAMA” alliance agreement that has bound them together so far remains intact.

Separately, a Tokyo court on Monday rejected Ghosn’s request to attend Nissan’s board meeting, denying a seat at the table to the executive who drove the alliance with Renault for two decades.

Released on a $9 million bail last week after spending more than 100 days in a Tokyo detention center, Ghosn faces charges of under-reporting his salary at Nissan by about $82 million over nearly a decade — charges he has called “meritless.”

In the wake of the scandal, Renault has started its own review of payments to Ghosn. French prosecutors have opened a preliminary inquiry into how he financed his 2016 wedding at the Chateau de Versailles, French media have reported.

His dramatic arrest in November and the detention exposed tensions between Nissan and its top shareholder Renault, and appeared to muddy the outlook for the future of the alliance – the world’s largest maker of automobiles, excluding heavy trucks.

Some at Nissan had been unhappy with Ghosn’s push for a deeper tie-up with Renault, which was seen as possibly including a full merger. Smaller Renault bought 43 percent of Nissan ahead of the 1999 rescue.

Nissan holds a 15 percent, non-voting stake in Renault, whose top shareholder is the French government.

Source: CNBC

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Volkswagen’s 5.9 billion euros annual savings goal may cut around 7,000 workforces

Volkswagen has ruled out compulsory layoffs until 2025, but early retirement will help the Wolfsburg, Germany-based carmaker to cut its workforces between 5,000 and 7,000 positions.

By Reuters @moneycontrolcom

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Volkswagen on March 13 stated it will reduce its workforce by up to 7,000 staff, raise productivity and eke out 5.9 billion euros worth of annual savings at its core Volkswagen brand by 2023 in a bid to raise Volkswagen’s operating margin to 6 percent.

Volkswagen has ruled out compulsory layoffs until 2025, but early retirement will help the Wolfsburg, Germany-based carmaker to reduce its workforce between 5,000 and 7,000 positions, the carmaker said.

“The measures from the earnings improvement programme will enable our brand to achieve a competitive return level of six percent in 2022,” Arno Antlitz, Volkswagen brand’s board member for controlling, said in a statement.

Source: Reuters @MoneyControl

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