Ford restructures European business with Belgian factory closure
Union leaders announced that Ford will close its Belgian factory, after talks on Wednesday morning, at the risk of cutting over 4,000 jobs.
A consultation period has began, during which Ford will discuss how the site in Genk, Belgium, will cease production after a 20% drop in demand in the market, and a resulting surplus of cars.
The US car firm will move production of its Mondeo, S-Max and Galaxy models to Valencia in Spain, according to union representative Luc Prenen.
Ford’s factory, which was reportedly set to manufacture the company’s new Mondeo in October 2013, will close in 2014.
The business said its C-MAX and Grand C-MAX models could also be produced in its German factory in Saarlouis in 2014, subject to further investigations.
Stephen Odell, Chairman and Chief Executive of Ford Europe, said: “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.”
Mr Odell went on to say that Ford recognizes its social responsibility, and will put support measures in place to “lessen the impact” for its affected employees.
Further restructuring plans for the company in Europe are due to be announced on Thursday.
This was posted in Bdaily's Members' News section by Miranda Dobson .