Ford Looking to Shutter Belgium Plant, Transfer Production to Spain, Germany
The auto maker says it has initiated an information and consultation process with union representatives regarding the factory’s closure, which would displace 4,300 workers.
Ford takes its first major step in cutting capacity in Europe with plans to shutter its Genk, Belgium, assembly plant by the end of 2014.
The auto maker says it has initiated an information and consultation process with union representatives regarding the factory’s closure, which would displace 4,300 workers.
If the proposed plan is confirmed, production of the next-generation Mondeo midsize sedan and S-Max and Galaxy cross/utility vehicles likely would be moved to Ford’s Valencia, Spain, assembly plant, the auto maker says.
To make room for the three models, production of the C-Max and Grand C-Max CUVs would be transferred from Valencia to Ford’s Saarlouis, Germany, facility.
Stephen Odell, chairman and CEO of Ford of Europe, says the production changes are needed to strengthen the auto maker’s business in Europe and return to profitable growth.
“We understand the impact this potential action would have on our workforce in Genk, their families, our suppliers and the local communities,” he says in a statement.
“We fully recognize 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.”
Ford says the European market has suffered a 20% drop in vehicle sales since 2007. The 19 markets in which the auto maker operates have hit a 20-year low this year and are expected to remain flat or see further decline in 2013.
The auto maker will reveal more details on its European restructuring Thursday during a conference call with media and analysts. CEO Alan Mulally, Chief Financial Officer Bob Shanks and Odell will participate.
Ford likely will face fierce opposition to the closing of the Genk plant by union representatives.
Jan Vercamst, president of the Belgian trade union ACLVB, calls the plan to close Genk “disgusting and degrading” to workers.
“In two minutes, the job security of Ford Genk is erased,” he says in a statement. “No one had ever dared to think this would be done.”
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