E.U.:Ford's latest job cuts outrage Belgians - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 10-02-03, 07:11 AM Thread Starter
Registered User
Stacy94PGT's Avatar
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
E.U.:Ford's latest job cuts outrage Belgians

Carmaker trims 3,000, blames European sales

October 2, 2003

BRUSSELS, Belgium -- Ford Motor Co. cut more deeply into its workforce Wednesday, scrapping 3,000 jobs in Belgium because of Europe's deteriorating car market.

The announcement came on the heels of news earlier this week that Ford will eliminate 1,700 jobs in Germany and more than 3,000 jobs in North America.

In reaction to the Belgian announcement, unions locked out deliveries of new supplies to Ford's main Genk plant, forcing management to interrupt production. More extensive labor action was likely over the coming days.

"We'll hit Ford where it hurts," said union representative Ludo Copermans.

Prime Minister Guy Verhofstadt immediately convened a meeting with Ford management and called its decision "unacceptable behavior." Ford is one of the biggest private employers in Belgium. Almost 10,000 people work at the Genk factory.

The authorities are angry because they had provided economic aid based on the promises Ford would maintain employment, said regional economics minister Renaat Landuyt. "We are talking about a multinational which is changing its tune, to put it mildly," he said.

Ford said it was forced to take action because of the depressed market.

"We need to adjust our business to the new realities in the European industry," said Ford of Europe President Lewis Booth. "We are taking steps to accelerate cost reductions."

Unions fear it would lead to a further scaling down of the plant in the eastern city, where Ford has already cut jobs in the last decade. Genk's economy is heavily dependent on the Ford plant.

In other recent cost-cutting moves, Ford's German division said Monday it plans to trim about 1,700 jobs, or 6 percent of its workforce, by year's end. In North America, Ford said Tuesday it will eliminate 1,700 contract workers, 1,300 vacant salaried positions and 50 salaried employees in the coming month.

Under the Genk plan, the automaker said it would cancel planned investment of some $1.04 billion in a line to produce the new Ford Focus. Now, the Focus will be produced in two instead of three European plants.

Ford said it will also move from three to two production shifts for its Mondeo at Genk.

"With lower industry outlooks, a larger number of competitors and escalating marketing costs, we must concentrate on maximizing out product lineup while minimizing our spending," Booth said.

Big losses in Europe have dragged down Ford's earnings. Ford of Europe's pretax loss ballooned to $525 million in the second quarter from a loss of $18 million in the same quarter a year ago.

The European losses are blamed on lower prices, an unfavorable vehicle mix and falling sales volume.

In trading on the New York Stock Exchange, Ford shares rose 33 cents to close at $11.10.

My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline  
Sponsored Links

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Thread Thread Starter Forum Replies Last Post
U.S.A.:Ford job cuts grow to 8,200, more Euro cuts... Stacy94PGT Ford Worldwide News 2 10-01-03 07:19 AM
No slackers allowed: Ford looking to protect its turf with latest SVT Focus creation Stacy94PGT Ford Worldwide News 0 09-12-02 08:14 AM
Ford to dely Production cuts HSE2 Ford Worldwide News 0 03-01-02 04:46 PM

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome