Ford crashes out of EU
Employees at the assembly factory of Ford in Genk, Friday 26 October 2012. | BELGA PHOTO YORICK JANSENS
In a statement with an impact bigger than a car crash the Ford company announced last week on 24 and 25 October that it would be closing down factories in two European countries.
The local communities in Genk, Belgium and Dagenham,UK are still reeling following the news that one of their main employers will be ceasing operations in 2014 and 2015 respectively.
US auto giant Ford announced the closure of its Genk plant, which comprises 4,300 positions saying that a slip in demand has meant lower car sales and therefore the factories were overstaffed.
“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.
The Ford factory in Genk is a major employer in the Flanders region of Limburg and staff were left emotional following the news of the proposed closure after an extraordinary works committee meeting.
“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 recognise 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.
Ford also announced on 25 October that it would also be closing the UK's Dagenham plant with an approximate 500 jobs going there.
The plan would help to address manufacturing overcapacity stemming from a more than 20 percent drop in total 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 Ford said.
The European Commission is reported to have said on 26 October that it could potentially discuss financial aid with the Belgian authorities for the thousands of workers being laid off by US auto giant Ford at its Genk plant.
The Commission is set toadopt the “CARS 2020: Action Plan for a competitive and sustainable automotive industry in Europe” on 8 November which aims to support the automotive sector in dealing with current adverse economic situation in Europe, and ensure the industry’s competitiveness and sustainability by 2020, a timely exercise.
The automotive industry represents 12 million jobs in the EU, 4% of the GDP and 90 billion trade surpluses. Moreover, this industry is the biggest private investor in research and innovation.
Speaking to Belgian Les Echos Vice President and Commissioner of the European Commission Antonio Tajani of the Directorate General of Enterprise called the news of the Ford closures a 'blow for Europe' on 27 October. new europe
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