Ford to shut more plants as Europe losses grow

Discussion in 'Economy' started by Nova78, Oct 25, 2012.

  1. Nova78

    Nova78 Gold Member

    Dec 19, 2011
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    Ford to shut more plants as Europe losses grow | Comcast

    Ford pressed ahead Thursday with its plan to slash production in Europe, announcing another plant closure and 1,500 more job cuts, as it warned that annual losses in the region will exceed $1.5 billion this year and next.Ford Motor Co. is struggling in Europe, like many major carmakers, because there are too many plants, labor costs are relatively high, and demand for cars is sliding due to the economic crisis. Worries about its European business have dragged down Ford's stock price this year.

    A day after announcing the closure of a major plant in Belgium, Ford said it would also close its transit van plant in Southampton, Britain, and the stamping and tooling facility at its plant in Dagenham, east London.

    The actions announced this week — along with a previously announced initiative to cut about 500 salaried and agency positions across Europe — affect a total of 6,200 Ford jobs, or about 13 percent of the company's European workforce.

    Counting the indirect impact on suppliers that depend on doing business with Ford's factories, the plant closures will cause about 11,000 job losses.

    OUCH !

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