Ford Shuts Down Three Plants In Europe
Ford has closed down three plants in the European Union in two days. Ford is shutting down the Ford Transit plant in Southampton and the stamping plant in Dagenham. “In 2013 Ford is closing its stamping plant in Dagenham and the Transit van plant in Southampton and that could lead to the loss of a couple of thousand jobs,” stated union leader Roger Maddison.
This is one of Ford’s plan to reduce losses in Europe, which is expected to exceed $1.5 billion. Their installed vehicle assembly capacity will be lowered by 18%, but they will see gross annual savings of $450-$500 million.
Around 13% of their European workforce will be affected by this restructuring. Ford is expecting their European business arm to be profitable again by 2015.
Analysts beleive that this is a great idea. Morgan Stanley analysts said “[Ford is] demonstrating the vision and industrial courage.” These tough decisions are expected to pay off in the long term.
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[TTAC]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry