After confirming yesterday it will shut down its Genk plant in Belgium, Ford today announced the closure of two more European plants, both located in the UK.
The two facilities that will be closed already from next year are the assembly plant in Southampton and stamping and tooling operations in Dagenham. However, from 2016, Dagenham will build a new, low-CO2, 2.0-litre diesel engine.
By closing Genk, Southampton and Dagenham, Ford’s installed vehicle assembly capacity will be reduced by 18 percent or 355,000 units (excluding Russia). These three facilities currently employ approximately 5,700 hourly and salaried employees. The related gross annual savings are estimated at $450 million to $500 million.
Ford Europe’s restructuring plan also includes “relocating production of key products for a more efficient manufacturing footprint, significantly improved plant utilization and work force reductions”.
“Using the same One Ford plan that led to strong profitability in North America, we will address the crisis in Europe with a laser focus on new products, a stronger brand and increased cost efficiency,” said Alan Mulally, Ford president and CEO.
Last month, Ford announced plans to launch an array of new products to seize growth opportunities in segments such as large cars, sport utilities and commercial vehicles. In all, Ford plans to introduce 15 global vehicles in Europe within five years.