Ford Europe has said it will turn off the lights and shut the doors at its Genk plant in eastern Belgium by the end of 2014.
The closure of the plant will form part of an overall shake-up of Ford’s European operations in the face of falling demand. Ford says the move will “help to address manufacturing overcapacity stemming from a more-than-20% drop in total industry vehicle demand in western Europe since 2007.”
The new plan could see production of the next-generation Ford Mondeo, S-MAX and Galaxy, move to the campany’s facility in Valencia, Spain, while assembly of the C-MAX and Grand C-MAX MPVs could move from Valencia to Saarlouis, Germany.
Ford will leave behind around 4 300 workers when it moves from the Genk facility, where hundreds of workers gathered outside on Wednesday to hear management announce the plans to local union representatives. “It’s incredible, just last month I got an invitation to celebrate 25 years working here, said one worker, Peter Aerts. Local reports from the Flanders region said several thousand other related jobs were at risk, particularly among suppliers whose businesses were closely integrated with the Ford plant.
Stephen Odell, chairman and CEO, Ford of Europe said in a statement, “The proposed restructuring of our European manufacturing operations is a fundamental part of our plan to strengthen Ford’s business in Europe and to return to profitable growth. We understand the impact this potential action would have on our work force in Genk, their families, our suppliers and the local communities. We fully recognise and accept our social responsibilities in this difficult situation and, if the restructuring plan is confirmed, we will ensure that we put in place measures and support to lessen the impact for all employees affected.”
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