Wednesday, November 7, 2012

Ford Motor Company (NYSE:F) indicates more plant shutdowns, job lay-offs

The debt crisis in the Eurozone just refuses to go way and employment prospects in the region are diminishing as more and more companies reduce jobs in order to reduce expenses and remain profitable.

Ford Motor Company(NYSE:F), which has already closed down some plants in Europe and announced its intention to lay off more than 6000 workers in the region, indicated that it may resort to more job cuts and plat shutdowns if the current dismal conditions persisted.

The situation in European markets remains "very volatile", Ford Chief Executive Alan Mulally said at a conference in Berlin on Wednesday.

"We don't know whether it (European economy) will stabilize or hit bottom or not because it's continuing to decrease," said Mulally.

Last month the company had spoken of van factory in Britain and a stamping plant and a manufacturing unit in Belgium next year.

The company, which is the second largest carmaker in the United States, has been making losses in Europe and has announced plans to streamline its production capacities to match demand. It reported a loss of $468 million in Europe in the third quarter.

Ford executives had said that the situation in the region would be monitored on a continuous basis to assess further action.

"That (economic prospects) will determine what we do - if we do anything more," the CEO said. "The most important thing is to match our production to the level of demand."

With all the cutbacks that the company is planning, it aims to have savings of $500 million annually by 2015, when it expects to achieve profitability.

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