Automobile
Ford to Shut Few Plants As Losses Grow in Europe
Ford Motors said that it is planning to slash its productions in Europe, closing its plant, leaving 1500 workers jobless. The company said it had to take the tough decision in order to bear the annual losses in Europe that will surpass $1.5 billion by next year. Ford is facing a tough time in Europe, like many other auto manufacturers, as the labor costs are relatively high and having too many plants with demands for new vehicles sliding due to poor economy may lead to extreme losses. Uncertainties about its Europe business have dragged down the company’s stock prices.
More Plants to be Shut Down
It had previously announced that it is closing one of its major plants in Belgium and now it declared that it’ll shut down even Transit Van facility in Britain and another tooling firm at its plant in east London. Company said that it had to close down the less-productive plants, since it has estimated about $1 billion loss in a year and didn’t want to go down that path. It has been pursuing layoffs and plant closures in Europe and due to that, worries have been increasingly rising. It may also shut down in Britain as trade unions at the company’s Southampton plant have been called for a board meeting with management.
6200 Job Losses Affecting Ford’s 13% European Workforce
The actions were declared along with a previously claimed initiative to dismiss about 500 agency positions and salaried employees across the nation, affecting a total of 6200 jobs or 13% of Ford’s European workers. Counting the indirect clash on providers, which rely on doing business with company’s plans, the factory closures will cause job loss to more than ten thousand people. Alan Mulally, CEO and President of Ford, said that the outcome of their actions will have an impact on many families in Europe and the company will work alongside all the investors and share-holders during these changes.
Britain’s United Union General Secretary, Len McCluskey said that the employees may start procession against the shut-downs. He said Ford has handled this situation disgracefully; it was planning to build a new Transit vehicle in Southampton in 2014 and it promised the staff that they’ll be provided with all the benefits.
Ford said it is closing the plan to cut short its costs, focusing on rebuilding their sales and work on safety technologies and fuel efficient motors. It hopes that the European market and its business will return profitably over next couple of years, on account of closures of these less-productive plants and introduction of new vehicles.
Automobile
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