Ford will close its Genk factory in 2014

In the end, the urgent call that Ford made yesterday to the union representatives at its Belgian plant has had the worst possible outcome. The factory will cease its production activity within two years. However, given the circumstances of the European car market, and given that Ford is one of the companies suffering most in this crisis on the continent, it is no surprise.

The reason is the same as for all the European plants in danger: Genk has long suffered from the problem of underused production capacity. In other words, it is not profitable for Ford to keep it open, since, according to analysts, demand for new vehicles in Europe will continue to fall in the coming years. From the assembly lines of these Belgian facilities come the Mondeo, S-Max and Galaxy.

Another important point of this tough decision taken by Ford, which according to the European division’s chief executive, Stephen Odell, who says it will take the necessary decisions to “mitigate the impact on all affected workers” (of whom there are 3,400), is how it will affect Spain. The blue oval, following this closure, will modify its production strategy on the continent, and Almussafes is part of it.

The Valencian plant may change its upcoming production orders if these are approved after being discussed in the manufacturer’s offices. According to the press release, the possibility is being evaluated of moving the three models currently made in Genk to Valencia when the former closes. In exchange, the C-Max and Grand C-Max would no longer be produced in Spain but at the German plant in Saarlouis. But as we said, this is still to be confirmed. The Kuga would not be involved in this change and remains assigned to Almussafes.

Source | Ford