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Ford Could Cut More Jobs in Europe If Slump Deepens
CEO Alan Mulally said Ford Motor Co. which plans to close three factories in Europe by 2014 cannot rule out further capacity reduction there if the region's economy continues to deteriorate.
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CEO Alan Mulally said Ford Motor Co. which plans to close three factories in Europe by 2014 cannot rule out further capacity reduction there if the region's economy continues to deteriorate.
Mulally tells an industry conference in Berlin that Ford isn't confident that Europe's downturn has hit bottom. Matching production to demand is the company's top priority, he says.
Mulally adds that the company has no current plans to halt factory shifts or close facilities beyond the measures it has already announced.
Ford said last month it would shutter a van factory in Southampton, England, and an associated U.K. stamping plant next year. A car plant in Genk, Belgium, is slated to end operations in 2014.
The three closings would eliminate 5,700 jobs and 355,000 units of capacity and save the company an estimated $500 million per year by 2015.
Ford has predicted it will lose a combined $3 billion in Europe in 2012 and 2013. The company expects to return to profitability in the region by mid-decade.
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