Ford to Scrap Two UK plants
Monday 5th November, 2012
Ford told British unions Thursday it would scrap its Southampton van factory and an associated stamping facility in Dagenham in mid-2013, slashing 1,400 jobs and ending vehicle manufacturing by Ford in Britain.
The move comes a day after Ford announced it would close a major car plant in Genk, Belgium, in late 2014. In all, Ford cut 6,200 jobs and reduced European production capacity by 18 percent to save $450-million US to $500-million US a year (all figures US currency).
Ford also said it expects to lose more than $1.5-billion in the region this year, up from its earlier $1-billion forecast. Ford expects a similar loss next year, when the European car sales are expected to be, at best, on par with 2012 levels.
"We are really trying to reflect the reality" of the economic slowdown and industry downturn in Europe, Chief Executive Alan Mulally told analysts and reporters on a conference call. "That's why we need to move decisively now."
With no market recovery in sight, car makers are struggling to scrap underused factories and cut surplus jobs that are fueling losses in Europe. The Southampton plant was the fourth European vehicle plant closure announced this year.
