Ford in massive European restructuring
The firms has said its European operations could suffer losses of $1bn (£630m) this year and as a result will close its production plant in Genk, Belgium, by the end of 2014, and it likely to announce today the end of Transot production at Southampton.
The plan would help to address manufacturing overcapacity stemming from a more than 20 percent drop in industry vehicle demand in Western Europe since 2007.
New vehicle sales in the region have reached a nearly 20-year low this year and are expected to remain flat or fall further next year.
'The proposed restructuring of our European manufacturing operations is a fundamental part of our plan to strengthen Ford’s business in Europe and to return to profitable growth,' said Stephen Odell, chairman and CEO, Ford of Europe.
'We understand the impact this potential action would have on our work force in Genk, their families, our suppliers and the local communities. We fully recognize and accept our social responsibilities in this difficult situation and, if the restructuring plan is confirmed, we will ensure that we put in place measures and support to lessen the impact for all employees affected,' Odell said.