It seems Ford’s announcement of its plans to exit the World Rally Championship last week were just a precursor of things to come. Yesterday we heard news that Ford’s Genk facility in Belgium would be closed in 2014 as part of a shake-up of Ford’s European operations in the face of falling demand, but today comes news of even more cost cutting as soon as 2013.
Ford’s U.K. operations will be curtailed with the closures of their Southampton assembly plant, as well as their stamping and tooling operations in Dagenham. This brings the number of workers affected by the restructuring to 5 700, roughly 4 300 employees at Genk and 1 400 at the two UK plants. The company expects the closures to reduce overcapacity and save between €346- and €385-million a year.
The changes appear drastic, but Ford’s European operations are expected to post a loss of more than €1.1-billion in 2012, which the company attributes to the economic slump that’s brought new car sales to an almost 20-year low.
“Using the same One Ford plan that led to strong profitability in North America, we will address the crisis in Europe with a laser focus on new products, a stronger brand and increased cost efficiency,” said Alan Mulally, Ford president and CEO.
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