Ford confirmed the closures of two more European plants on Thursday, bringing the automaker’s total count to three. Earlier this week Ford announced that it will close its Genk, Belgium, plant by 2104 and confirmed on Thursday that two other factories in the UK will follow suit.
Ford latest plan will see its plants in Southampton and Dagenham close by 2013. Ford's Southampton plant builds the Transit van and Dagenham is a stamping and tooling facility.
According to Ford, the three plant closures will reduce its European capacity by 18 percent, or about 355,000 units. The reduction in capacity is expected to save the automaker between $450 and $500 million per year.
“Using the same One Ford plan that led to strong profitability in North America, we will address the crisis in Europe with a laser focus on new products, a stronger brand and increased cost efficiency,” said Alan Mulally, Ford president and CEO. “We recognize the impact our actions will have on many employees and their families in Europe, and we will work together with all stakeholders during this necessary transformation of our business.”
About 5,700 hourly and salaried employees will lose their jobs as a result of the three plant closings.
Ford also confirmed that its European losses will be greater than $1.5 billion this year, far exceeding the company's initial estimates.