Ford to close Belgian plant in 2014: unions

jpd80 · 24-10-2012, 08:15 PM

Quote:

Ford to close Belgian plant in 2014: unions

LINK

(Reuters) - Ford Motor Co (F.N) will close a factory employing 4,300 workers in the Belgian town of Genk in 2014,
trade union leaders at the site said on Wednesday, as the U.S. automaker tries to stem losses in Europe and
match capacity to tumbling demand.

Consumers are grappling with tight budgets, unemployment and government austerity, creating economic gloom
that has sparked a slump in the region's auto market; too much production capacity has weighed on the
profitability of carmakers in Europe.

"The management has decided to close the car assembly and the press activities in Genk at the end of the
current production cycle in 2014," Luc Prenen, leader of the ACV union, told workers gathered outside the plant.
"This will result in the closing of the Genk production site and will cause the loss of 4,300 jobs," he added,
using megaphone to make himself heard to the crowd.

The plant makes the Mondeo mid-size car and Galaxy and S-MAX minivans, but all three models are nearing
the end of their current life cycles. Production of the new Mondeo, S-MAX and Galaxy models will be moved
to Valencia in Spain, Prenen said.

I suspect that this will be progressive shutdown as new Mondeo arrives September 2013 and the new versions of the
S-Max and Galaxy 12 months later. Therefore, No.1 plant will close first in 2013 followed by No.2 plant 12 months later.

Bossxr8 · 24-10-2012, 09:48 PM

They need to do something in Europe, they are bleeding money. Yet Ford Australia still can't get much in the way of supplies of anything diesel

Especially Mondeo and Kuga now that Focus has gone to Thailand.

**DJM83** · 24-10-2012, 10:20 PM

Shame, a lot of history at that plant too.

Joe5619 · 24-10-2012, 10:22 PM

Is this where Australia currently sources Mondeo from?

A same all those poeple will be out of work.. I'm glad I dont live in Europe at the moment!!

Bossxr8 · 24-10-2012, 10:30 PM

Yes it is.

Angeldust · 24-10-2012, 10:46 PM

they;re moving all the work to spain? i guess labour costs will now be cheaper there..

**DJR-351** · 24-10-2012, 11:08 PM

Quote:

Originally Posted by Bossxr8

Yet Ford Australia still can't get much in the way of supplies of anything diesel

And your thoughts on why they could not be made here are....?

new2ford · 24-10-2012, 11:22 PM

Quote:

Originally Posted by Joe5619

I'm glad I dont live in Europe at the moment!!

Really? The cost of living in Australia is about 150% higher than here in central Europe. So give me a reason why I should come back and subsidise Australia's "wealth" (whoever's pockets it's hidden in)?

Unfortunately I have to!

Joe5619 · 25-10-2012, 07:43 AM

Quote:

Originally Posted by new2ford

Really? The cost of living in Australia is about 150% higher than here in central Europe. So give me a reason why I should come back and subsidise Australia's "wealth" (whoever's pockets it's hidden in)?

Unfortunately I have to!

If you can't get a job, you can stick "cost of living" you know where!!

Also, Australia is the BEST country on earth, that is enough for me!!

new2ford · 25-10-2012, 08:01 AM

Quote:

Originally Posted by Joe5619

If you can't get a job, you can stick "cost of living" you know where!!

Also, Australia is the BEST country on earth, that is enough for me!!

I didn't say it wasn't, I'm just asking why I have to rapidly empty my bank account when I get back there!

As for being unemployed, it does help somewhat if the cost of living is only 1/3 as much. One in 8 Australians live below the defined poverty line. The country's great but the, er, highly competent folk in Canberra need to explain what the hell they're doing with it.

aquahead2001 · 25-10-2012, 08:52 AM

There was an article yesterday's Melbourne Age about the cost of doing business in some parts of the world. It went along the lines of if you bought US$100 dollars of stuff in the US, what would it cost to get the same stuff elsewhere. Needless to say, Australia was near the top of the list at third highest at US$160. India was the lowest at US$41.

However, Spain was one of the cheaper parts of Europe compared to say France and Germany...

I found the link:

http://www.theage.com.au/business/au...022-281jh.html

It all comes down to how much it will ultimately cost. I think this once again proves that Australia is an expensive place to build and buy in...

Bud Bud · 25-10-2012, 08:53 AM

It appears that they are also talking about closing Southampton where the mighty transit is built as well. They will have to build it somewhere as it is still one of the most popular commercial vans on sale but it is the problems with continental Europe that has slowed transit sales for Ford.

Bud Bud

jpd80 · 25-10-2012, 10:02 AM

Quote:

Originally Posted by Bud Bud

It appears that they are also talking about closing Southampton where the mighty transit is built as well. They will have to build it somewhere as it is still one of the most popular commercial vans on sale but it is the problems with continental Europe that has slowed transit sales for Ford.

Bud Bud

Ford has a big Transit and Transit connect plant in Turkey that can deliver all the units needed.

Genk production is way down this year, as at September it has only made about 90,000 vehicles
(Mondeo, S-Max and Galaxy), about 10,000 vehicles a month, way down from 275,000 in 2007.

Nikked · 25-10-2012, 05:30 PM

So.

Here in australia, for the past 2 years, media have "predicited" that ford will shut its factory here, as we build a local car "not relivent to fords plans"

Yet...

Ford are shutting down factories world wide, that produce global models, and dont beat around the bush.

"its closing in 2014"

So...

Here Ford Australia is, standing pretty, with no plans to shut down at all.

Take that Grover, Drive et al...

Buntz · 25-10-2012, 11:51 PM

Quote:

Originally Posted by Nikked

So.

Here in australia, for the past 2 years, media have "predicited" that ford will shut its factory here, as we build a local car "not relivent to fords plans"

Yet...

Ford are shutting down factories world wide, that produce global models, and dont beat around the bush.

"its closing in 2014"

So...

Here Ford Australia is, standing pretty, with no plans to shut down at all.

Take that Grover, Drive et al...

My sentiments exactly.

(Maybe Australia can get one of those models for RHD production? Doubtful... but's it's nice to dream)

zebby · 26-10-2012, 08:16 AM

http://carscoop.blogspot.com/2012/10...lan-leads.html

"Ford said that it will likely move production of the next-generation Mondeo, S-MAX and Galaxy from Genk to its assembly plant in Valencia, Spain, adding that this will lead to a delay in the introduction of the Mondeo in Europe, as it won't hit the market before late 2014."

Looks like it is going to be a long wait for the new Mondeo. Don't see it arriving in Australia till mid/late 2015, that's almost 3 years away.

Brazen · 26-10-2012, 09:55 AM

Quote:

Originally Posted by zebby

[url]http://carscoop.blogspot.com/2012/10/ford-european-restructuring-plan-leads.html
"Ford said that it will likely move production of the next-generation Mondeo, S-MAX and Galaxy from Genk to its assembly plant in Valencia, Spain, adding that this will lead to a delay in the introduction of the Mondeo in Europe, as it won't hit the market before late 2014."

Looks like it is going to be a long wait for the new Mondeo. Don't see it arriving in Australia till mid/late 2015, that's almost 3 years away.

With the delay and it being moved to a new plant and with the Falcon reveal at the same time, is it possible Mondeo will be dropped in Australia?

Fast Eddie · 26-10-2012, 02:04 PM

Dutch News on SBS2 this morning ran a story about the closure of the Plant with the person being interviewed giving their opinion. In the background, rather than burn an effigy of, for instance, a government official or Ford of Europe President, they set fire to an actual S-Max! Take That!.

Road_Warrior · 26-10-2012, 02:49 PM

Like I've said before, this is the sort of painful restructuring that the US, Ford Australia and now Ford of Europe has to suffer through. I know its all well and good to say it's for the "greater good" but that's cold comfort for the people who will be out of a job and have to find a way to put food on the table and keep a roof over the family's head.

jpd80 · 26-10-2012, 05:19 PM

Quote:

Originally Posted by zebby

http://carscoop.blogspot.com/2012/10...lan-leads.html

"Ford said that it will likely move production of the next-generation Mondeo, S-MAX and Galaxy from Genk to its assembly plant in Valencia, Spain, adding that this will lead to a delay in the introduction of the Mondeo in Europe, as it won't hit the market before late 2014."

Looks like it is going to be a long wait for the new Mondeo. Don't see it arriving in Australia till mid/late 2015, that's almost 3 years away.

I have a hunch that Ford has been planning this for a while and the previously announced delay until September 2013
for the Mondeo was probably caused by Ford organising alternate supplier logistics in Valencia and I would expect
that it would take Ford about 12 months to set up a new line and supplier park at Valencia.

Ford has previously mentioned an additional gap of 12 months between introduction of new Mondeo and
the sibling S-Max-Galaxy twins in about two years time, further evidence of a switch in production location.

Buntz · 27-10-2012, 01:27 AM

Quote:

Originally Posted by zebby

Looks like it is going to be a long wait for the new Mondeo. Don't see it arriving in Australia till mid/late 2015, that's almost 3 years away.

Might be even longer with lazy Spaniards taking a siesta.

Maybe something that doesn't sell so well. Like the Fiesta!

new2ford · 27-10-2012, 05:36 AM

Spain doesn't have a reputation for the best quality and reliability. (Speaking also as a one-time owner of a Spanish-built car!) I'd get a Mondeo while it was still built in Belgium. If the smaller Fords available in Australia aren't built in Germany I'm not interested. Skoda's won my attention anyway, streets ahead, so if I ever downsize it won't be a Ford.