For a while there, Ford (NYSE:F) was looking like a company on the move. A new battery plant was planned for launch. Sales were on the rise thanks to supply chain problems relenting and finally allowing new cars to get to market. However, what goes up must come down. What came down did so in Europe, as jobs were put on the chopping block.
Ford’s plan in Valencia, Spain, took the hit on this one. The plant had 6,000 employees therein, and now, 1,100 of them will be shown the door. The Valencia plant made the S-Max and Galaxy vehicles, both of which are to be discontinued starting this April.
This isn’t the first time Ford cut jobs in Europe, either; just months ago, Ford cut 2,300 jobs in Germany, as well as 1,300 in the U.K., and another 200 in other locations. Since electric cars require less labor to produce, reports note, Ford could get rid of some people without costing the company any productivity. Some jobs will remain safe for some time, though, as Ford looks to keep 3,400 engineering jobs in Europe.
Overall, analyst consensus calls Ford stock a Hold. However, with an average price target of $13.69, it comes with 12.12% upside potential.
