Ford to Shut Two European Factories With 4,900 Jobs Lost |
| Businessweek - Oct 24, 2012 |
Ford Motor Co. (F) will shut two European assembly plants, its first car-factory closings in the region in a decade, and cut almost 4,900 jobs to stem losses that the company predicts will exceed $1 billion in 2012.
A factory in Southampton, England, that makes chassis cabs for the Transit van will close as early as next year, two people familiar with the situation said, asking not to be identified revealing internal plans. A 48-year-old plant in Genk, Belgium, that builds the Mondeo mid-sized sedan, S-Max wagon and Galaxy minivan will close by the end of 2014, Dearborn, Michigan-based Ford said today in a statement.
The European sovereign-debt crisis is set to lead to the biggest annual drop in car sales in 19 years. Manufacturers such as PSA Peugeot Citroen (UG), General Motors Co. (GM)’s Opel brand and Fiat (F) SpA have responded by shutting or outlining plans to close factories in an effort to restore earnings. Ford Chief Executive Officer Alan Mulally said last month that the European industry needs to “size to the real demand” to become profitable.
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- Posted: 2012-10-24 14:53:35
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