Ford Europe has achieved net cost reductions of $1.2bn just two years into instituting its five-year renewal plan – which is serving as a blueprint for the overhaul of Ford's US operations.

"We have improved the business but I am not satisfied yet," said Martin Leach, Ford Europe President and chief operating officer.

The company has crossed the break-even point and now has a medium term aim of a three per cent return on sales. The company has cut its number of plants to six from 11, slashed its workforce from 97,000 to 67,000, and has achieved huge savings by taking a holistic view – including action to cut down injuries at plants. Absenteeism is down 20 percent so far this year from a year ago.

It now buys 1,800 parts from 140 suppliers compared with 3,500 parts from 340 suppliers two years ago.