Ford to Close Transmission Plant in France

Ford Motor Co. intends to stop production at its transmission plant in Blanquefort, France, by the end of August. The resulting shutdown will eliminate 850 jobs.

Ford said in June it intended to close the factory unless a buyer came forward. By late September, French Economy Minister Bruno Le Maire announced that just such a deal appeared imminent with gearbox supplier Punch Powerglide Strasbourg SAS.

But Ford says it has rejected the ultimate deal because it presented “significant risks” of future job losses, according to Reuters. It isn’t clear why Ford considers job risk with a new buyer worse than a guaranteed closure of the plant nine months from now.

Le Maire, who demands that Ford reconsider, describes Punch Powerglide as a “credible, solid buyer” and says he was “revolted” and “sickened” by the decision.

Ford sold the Blanquefort plant in 2009 to a company that planned to use it to make windmill components. But the deal collapsed, and Ford bought back the factory in 2011. The facility received aid from the French government in 2013 in return for Ford’s pledge to continue production there for five years.

Blanquefort has supplied 5- and 6-speed automatic transmissions to BMW, General Motors, Tata Motors and several Chinese vehicle manufacturers.