Ford Maintains Production
US auto manufacturer Ford has announced that it will invest some EUR800mn (US$980mn) in its plant in Genk, Belgium, following negotiations with labour unions. In an 18-month programme, the company will continue producing the Mondeo, S-Max, and Galaxy models at the site. BMI believes that ongoing cost-saving measures at the site have made this a more attractive facility to keep open, despite the company's desire to reduce over capacity in Europe.
Recently, there had been some media speculation that none, some, or all of the models would be continued at the plant. Ford Genk employs some 4,500 staff on site, while 1,500 more work for Tier 1 suppliers using a conveyor system for supply, and a further 800 employees are involved at Tier 2 suppliers. As part of the deal to keep production at the site, the labour union agreed to deliver 12% savings costs - an achievement that has already been in place for the past year and a half. BMI believes that these ongoing cost-saving measures formed part of the company's decision to keep current production at the plant and to invest in the facility.
Over the first eight months of 2012, Ford's sales in Europe have fallen some 12% year-on-year (y-o-y), to 645,000 units. The passenger car market across the region declined 6.6% y-o-y in this period, to 8,592,000 units.
|Short Term Uptick|
|Passenger Car Production, CBUs|