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Ford of Europe has announced plans to restructure its manufacturing activities in Europe to deal with the downturn in demand for new cars.
The Valencia Plant in Spain will move to a two-shift pattern from 1 May. Ford said further discussions are continuing to decide how to manage the “surplus labour” in the short-term.
Longer term, it said, two-shift versus three-shift working will depend on market demand.
“Cutting capacity, reducing costs and safeguarding our future product plans are essential actions for Ford of Europe to sustain a viable business for the future,” said Ford of Europe chairman and chief executive officer John Fleming.
“We have already taken a number of actions but, as the market has continued to weaken substantially, we are now taking additional necessary actions.”
The actions announced today primarily affect Ford’s manufacturing operations in Germany and Spain, and at its new manufacturing facility in Craiova, Romania:
• Ford re-affirmed its commitment to manufacturing in Germany, Spain and Romania.
• Fiesta production will continue at Valencia, and Ford Focus production will be replaced by production of the next-generation Ford C-MAX.
• In addition, from later this year, Valencia will produce a new 2.0-litre version of Ford’s EcoBoost petrol engine.
• Saarlouis Plant in Germany will continue with its current down-time plan. The current labour level will be reviewed on a regular basis to determine if it is sustainable.
• Saarlouis is confirmed as the lead plant for all derivatives of the next-generation Ford Focus. The current Ford Kuga and Ford C-MAX models will not be replaced there when production ends at the plant.
• Cologne Engine Plant will share with Ford’s Craiova Engine Plant the production of a new, small-displacement EcoBoost advanced petrol engine.
• Ford also confirmed it is reviewing the opportunity for a second European source for a derivative of the next-generation Ford Focus, and that this review will be finalised in the near future.