This is double of what the automaker mentioned before, according to Adam Jonas, an analyst at Morgan Stanley. It does not take an economics graduate to guess that Ford’s European factories are at the risk of shutting down. According to reports, Ford’s assembly plants in Southampton, England, and Genk, Belgium, may be vulnerable.
“By our calculations, Ford’s capacity utilization in Europe is even lower than GM’s, making it lower than any automaker besides Fiat SpA”, Jonas commented in an e-mail.
“Ford must address its excess-capacity situation with decisiveness to stay ahead of the wave.” The Southampton plant employs about 500 people and manufactures the Transit, a light commercial vehicle. The Genk factory employs about 5,500 people, making the Galaxy, S-MAX and Mondeo.
At the point of penning this article, there are renewed concerns that the weight of the Eurozone sovereign debt would force Spain to seek a full state bailout. Like Fiat, General Motors and PSA Peugeot Citroen, Ford may have to take drastic measures such as layoffs and plant shutdown to survive the tough times ahead.
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