Ford to shutter two factories in Europe, cut 4,900 jobs
Wednesday, October 24, 2012 2:35 PM
Ford Motor Co. said Wednesday it will shut down two European assembly plants, its first car-factory closings in the region in a decade.
Ford also plans to cut nearly 4,900 jobs to stem losses that the company predicts will exceed $1 billion this year, Bloomberg reported.
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, Mich.-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, General Motors Co. and Fiat SpA have responded by shutting or outlining plans to close factories in an effort to restore earnings.
Ford CEO Alan Mulally said last month that the European auto industry needs to "size to the real demand" to become profitable.