Ford Considering Closing Factory in England or Belgium

FordFordUnited States of America, 1903 > present92 models
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is considering jumping on the bandwagon in Europe with PeugeotPeugeotFrance, 1882 > present120 models
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and FiatFiatItaly, 1899 > present159 models
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by closing a factory in Europe. The two most likely candidates are Southampton, England, and Genk, Belgium.

Southampton is specifically on the chopping block because it is running a less that 33% capacity. The factory produces bodies for the Ford TransitFord Transit Gen.8United Kingdom, 2011 > present359 versions
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van. It employs 550 people. 

Genk is doing slightly better and running at 68% capacity. It builds the MondeoFord Mondeo Gen.4United Kingdom, 2007 > 2013244 versions
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, S-MaxFord S-MaxUnited Kingdom, 2006 > 201365 versions
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and GalaxyFord Galaxy Gen.3 [Mark III]United Kingdom, 2006 > present50 versions
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. The factory is also safer from shutdown because all of these vehicles will be revised very soon. Ford has already confirmed that the next Mondeo will be built at the Genk factory. 

Ford is only using 63% of its manufacturing capacity in Europe. Until now, Ford has done relatively well in Europe, especially compared to its worldwide rival General Motors. Ford has made $1.73 billion in Europe since 2007, while GMGMUnited States of America, 1998 > present8 models
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has continually lost money in the region. Still, Ford is finding it tough to make many in Europe now without discounting its vehicles. 

Analysts predict that normal auto demand will not return to Europe until late 2014 and will stay under peak demand levels through 2016. 

It is not as if Ford is unwilling to close factories. It closed a factory in Dagenham, England, in 2003 and was able to get rid of several other factories when it sold JaguarJaguarUnited Kingdom, 1922 > present53 models
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, Land RoverLand RoverUnited Kingdom, 1978 > present15 models
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and VolvoVolvoSweden, 1927 > present49 models
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. 

Ford is forecasting a $570 million loss for the second quarter. Its sales were down 16% in June and down 10% in the first half of the year. 

Source: Automotive News