EMCC European Monitoring Centre on Change

Ford

Company/Organisation:
Ford

Geographic Location

Country: European Union
Location of affected unit(s): Belgium, UK, Germany, other EU countries

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 47700
Group: Ford

Employment Effects

Announcement Date: 25-09-2012
Planned Job Reductions min: 6200
Planned Job Reductions max: 6200
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2013
Foreseen End Date: 31-12-2013

Additional Information

US car manufacturer Ford announced its intention to close three production sites in Europe: Genk in Belgium (see here), and two plants in the UK - Southampton and Dagenham (see here). The restructuring will affect 1,400 employees in the UK and 4,300 in Belgium. Adding 500 job cuts that Ford had announced a few weeks earlier, the company will cut 6,200 jobs in Europe. This accounts for around 13% of the company's European workforce. Through this restructuring, the group will reduce its production capacity by around 18% in Europe (355,000 cars a year) and save between US $450 and US $500 million per year.

It is reported that the management aims to avoid compulsory dismissals in the UK and expects voluntary departures.

According to the UK trade union GMB the jobs may be offshored to plants in Turkey (Ford Otosan at Kocaeli) and in Russia (Saint Petersbourg).