Friday, October 26, 2012

Ford Motor Company (NYSE:F) To Cut 1,500 UK Jobs As Europe Losses Escalate

Ford Motor Company(NYSE:F) reportedly cutting 1,500 UK jobs and shutting down plant since losses in Europe are escalating at an alarming rate. Losses have exceeded $1.5 billion.

Ford announced on Thursday that it will cut 1,500 jobs in Britain and eliminate a stamping and tooling facility as it warned that losses in Europe will cross $1.5 billion this year.

For Motor Co. announced on Wednesday that it will close a plant in Brussels. It clearly seems to be struggling in Europe. Sales are down since the region’s economic crisis is hurting the demand from households and business fronts.

Ford mentioned that its transit van plant based in Southampton would be shut down in July and the stamping and tolling facility based in east London would be closed sometime next year. Transit van production will be consolidated at the plant in Kocaeli, Turkey.

The plant in Southampton employed 500 workers. It was Ford’s last vehicle assembly plant in Britain. Production has deteriorated from 66,000 in 2008 to 28,000 the previous year, when the work was reduced to a single shift.

Presently, Ford has 11,500 workers at plants in Britain, as told by Unite union.

Ford has promised further investments at the Dagenham plant in east London to support production of a new 20-litre, four-cylinder low-CO2 diesel engine lineup. It has plans for investing in Bridgend plant in Wales to support gasoline engine manufacturing.

Chairman of Ford of Britain, Joe Greenwall said that investing and building on the company’s strong points is the only way to tackle the new economic reality in Europe and help in building a profitable business.

General Secretary of the Unite union, Len McCluskey said that workers would fight against the closures of plants.  He said that the announcement has been handled outrageously.

Ford’s sales were down 14.9% in September when compared with a year ago. 

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