Ford has announced that it is entering discussions to close its Genk plant in Belgium by the end of 2014, cutting around 4,300 jobs. The plant closure would mean the relocation of the next-generation Mondeo, Galaxy and S-Max production to other European facilities, which were due to begin manufacture in Belgium.
The plant closure is due to a 20 per cent drop in vehicle demand across Western Europe since 2007 - sitting at almost a 20-year low. Ford says that new vehicle sales are expected to remain flat or fall even further this year so the company is taking action to fully utilise its other European facilities.
While Europe makes up to 25 per cent of Ford's global sales industry sources say that the Western European plants are only running at around 65 per cent capacity.
Stephen Odell, Chairman and Chief Executive of Ford of Europe comments, "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."
This year, due to the decrease in demand, Ford is expected to make a $1 billion loss in its manufacturing sector in Europe.
The announcement of the Genk closure comes alongside news of two UK plant closures too. The Southampton factory that makes the Transit and employs around 500 people is set to close; as is a Dagenham facility that employs close to 1,000 workers. Trade unions have said that approximately 5,000 jobs would also go among subcontractors.