FORD plans to cut its salary bill in Europe by 10% in a move that could affect its fleet department.

The methods of saving, and the departments targeted, have yet to be decided, but the American firm needs to stem recent losses.

Ford spokesman Oliver Rowe said the announcement did not mean 10% of staff would go.

He said: ‘The European target is a 10% reduction in salary-related costs. That’s very different from a 10% salary head count reduction.’

Ford employs 14,000 staff in the UK and a further 46,000 across Europe. Rowe said there were no plans for compulsory redundancies and hoped any job cuts could be made voluntarily.

He envisaged 10,000 people leaving Ford globally over the next six to 12 months. Rowe added: ‘No department yet has any kind of detail. We’re looking at a process that will take the rest of the year and beyond.’ The cuts will only affect the Ford brand and not any of its related marques such as Aston Martin and Jaguar.

The plans follow Ford’s heavy third quarter pre-tax loss of $377 million (£213 million) globally compared with a $718 million profit a year earlier.

The European arm made a pre-tax loss of $55 million in the third quarter compared with a $33 million loss the previous year, mainly due to rising material costs.

Ford has promised to discuss ways of reducing the salary bill with unions.

Last week Ford’s chairman and chief executive Bill Ford warned of ‘significant plant closings’ in North America, where it has lost market share.

He said: ‘We face many challenges in this competitive and difficult environment.’