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Ford aims for £3.8bn savings

Ford is now aiming to cut costs by about £3.8 billion in a bid to save its ailing turnaround plan.

Bill Ford, chief executive, is ordering staff to make savings in to slash costs from every area of the carmaker's operations – apart from those connected to making the vehicles.

The cost of marketing, transport, computers and other non-production items comes to $30 billion a year, an amount that Mr Ford wants to reduce by a fifth in two years, though major job losses are not expected.

Ford's credibility hinges on meeting its profit forecast this year of $1.3 billion.

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