Ford Motor Co. is planning to restructure its loss-making operations in Europe, which is expected to incur more than $1 billion in losses this year. Chief executive Alan Mulally remains silent about the details of the revamp during a New York media event to unveil a redesigned Fusion mid-size sedan.
Ford’s CEO admitted that there is a tremendous decrease in demand in Europe, but he gave assurances that the carmaker remains absolutely committed to the region that will involve restructuring. Ford posted a 29 percent decrease in sales in Europe in August 2012, compared to just 8.5 percent decline by the overall industry.
Currently, Europe is one of the biggest concerns of Ford. Mullaly’s possible retirement in late 2013 also gave rise to speculation and concerns by analysts and investors.
Ford's board of directors is inclined to appoint Mark Fields, currently chief of Ford’s North and South American operations, to chief operating officer. The move would make him as heir apparent to Mulally. With regards to his retirement plans, Mullaly said he is "pleased to continue to serve as CEO of Ford." Ford’s current chief executive noted that the company has a strong bench of leaders.