Ford Motor has announced that will halt production for a week next month in Romania to adjust to weak European car market demand, the company said on Friday.
Ford operates one factory in Craiova, Romania (the former Oltcit car factory) where the automaker builds the new B-MAX and Transit Connect van. At this moment the company builds about 370 vehicles per day and roughly 1,000 engines.
“In September we will have seven days during which we will not produce the B-Max,” said Ford Romania spokeswoman Ana Maria Timis. “That is all we can say for now. It’s a very common situation for the auto industry.”
According to Timis, about 2,500 employees will be affected by the production halt. All 2,500 workers will receive 80 percent of their wages for the week.
Ford vehicle registrations in June rose 6.9 percent from a year earlier. Even if the automaker is saying that at least in Western Europe the market appears to have stabilized, it may not soon recover to pre-recession levels.
“Whether we will see signs of improvement is the debate,” Mr. Odell said. “We will probably start to see signs of minor recovery in the first part of 2014.”
The automaker is now in the middle of estructuring its operations in Europe, following the same template that worked in the United States during the economic crisis four years ago. Therefore the automaker will cut thousands of jobs, decrease vehicle production, and refresh vehicle lineups.