Ford is fighting with the financial crisis

Posted on Friday, 26 October 2012 , 06:10:47 byEmil

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Ford is fighting with the financial crisis


Ford is having a lot of problems lately because of the financial crisis that now take place in Europe. Not long ago we announced the specialists have pulled out of the World Rally Championship. It was a really sad announcement, but there is more. Trying to handle the expenses and trying to reduce the costs, the Americans plan to close three European factories. To be more precise we are talking about the UK assembly plant, the Genk, the one from Belgium and the one from Dagenham stamping / tooling operation in the UK. By taking this action, the carmaker plans to save up to $450 to $500 million per year. The ones affected will not be only the 5.700 employees who will have to find some other jobs, but the production plans the automaker had will go down the river. The most affected model will be the Ford Mondeo. The specialists revealed it recently and it could be delayed until 2014. The changing fiasco does not change here.



The carmaker also plans to move the production of the next generation Ford S-MAX, Galaxy and Mondeo to Valencia, in Spain, to transfer the production of the C-MAX and Grand C-MAX from Valencia, Spain to Germany in Saarlouis. The last measure refers to consolidating the production of the Transit in Kocaeli, Turkey. We have to admit that all these plans seem to be very drastic, but the European part of Ford will post a loss of more than $1.5 billion in 2012, or at least these are the expectations.



The company blames the economical crisis which managed to decrease new car sales and reached a 20 year low. In North America the situation is quite different and quite profitable actually. This being the case, the specialists plan to fight the crisis in Europe by offering new products and focus on increased cost efficiency, safety, smart technology, value and fuel efficiency. The full third quarter financial results of Ford will be announced on October 30th.



Ford is fighting with the financial crisis image Ford is fighting with the financial crisis image
Ford is fighting with the financial crisis image Ford is fighting with the financial crisis image
Ford is fighting with the financial crisis image Ford is fighting with the financial crisis image