Ford launches new Fusion

March 5, 2002 Posted: 1225 GMT

GENEVA, Switzerland (CNN) -- Ford, the world's second-largest car maker, launched its new Fusion model on Tuesday and announced restructuring was going to plan.

William Clay Ford Jr, chairman and chief executive, said: "We are ahead in our restructuring plan in terms of what we are doing and the market." He told reporters at the Geneva Motor Show that the company would take further steps if required.

Ford posted a fourth-quarter loss of $5.1 billion in February and announced plans to cut 35,000 jobs worldwide and close five plants in North America to slash costs and boost profits. Ford has been pitched in a battle for car sales with rivals General Motors and Chrysler. The U.S.'s three biggest car makers have been caught up in a spiral of offering rebates on virtually all models.

In Europe, the company was on track with a plan to reach a 3 percent to 4 percent return on sales in Europe in 2005-6, said Ford.

Ford (F: up $0.53 to $16.17, Research, Estimates) closed it Dagenham plant in east London last month, ending 71 years of car production. The company moved production of the Fiesta to Cologne in Germany in a move to cut its European plant capacity and associated costs.

	VIDEO As Ford lauches its new Fusion family car, Chief Executive David Thursfield discusses his plans to strengthen Ford's foothold in the European market Play video (QuickTime, Real or Windows Media)

Ford Europe lost $1.3 billion in 1999 on sales of $28.7 billion. Its European performance has improved and in 2001 Ford made of $266 million on sales of $31.9 billion.

"Here in Europe we are right on track," Ford Europe Chief Executive David Thursfield told CNN. "Much of the restructuring announced in May 2000 is behind us. The new product range, the new Fiesta and Fusion, will help us going from strength to strength."

European car sales are expected to decline by about 5 percent this year, according to analysts. Automakers are rolling out new cars on tried and tested platforms in a bid to drum up consumer interest.

"Europe is expected to be a little softer than last year," said Thursfield. "We expect a pick up at the end of this year and the beginning of next."

In Geneva, the company launched the Fusion, which blends the characteristics of a sports utility vehicle, people carrier, or MPV, and small car. It is aimed at people who want to get the best of a larger sportier car in the city.