Ford Closes Three EU Plants In A Week. Analysts Love It

ford closes three eu plants in a week analysts love it

As expected, Ford is closing an UK plant. Unexpectedly, Ford is closing another one right with it, bringing EU plant closings to three in two days. Ford is closing its Ford Transit plant in Southampton, and it is closing the stamping plant in Dagenham with it, says Automobilwoche [sub].

“In 2013 Ford is closing its stamping plant in Dagenham and the Transit van plant in Southampton and that could lead to the loss of a couple of thousand jobs,” said union leader Roger Maddison.

This is part of a restructuring plan to stem losses in Europe, expected to exceed $1.5 billion this year, says Reuters.

According to Ford, installed vehicle assembly capacity will be lowered by 18 percent, with related gross annual savings of $450-500 million. Thirteen percent of its European workforce will be affected by the restructuring.

Ford expects to lose $1.5 billion this year in Europe. By 2015, Ford’s Europe business is projected to be back in the blacks again.

The plans were well received by financial analysts. “With GM Europe you always wonder what’s going on – it looks like they are still bogged down in deciding what to do,” London UBS analyst Philippe Houchois told Reuters.

Analysts at Morgan Stanley believe Ford is “demonstrating the vision and industrial courage” to make tough decisions that will pay off long-term, Reuters says.

According to USA Today, Ford’s move “could break the logjam and give other automakers permission to announce similar shutdowns.”

Europe has factory capacity to build about 22 million units a year. This year, sales of 14 million are expected.

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  • Tresmonos Tresmonos on Oct 26, 2012

    This is sad in the sense that Ford is now going to be out of the UK. I always have held an illogical nostalgia to old manufacturing sites.

    • Dtremit Dtremit on Oct 27, 2012

      There's still a sizable engine plant at Dagenham that's reported to be adding a few jobs.

  • Chicagoland Chicagoland on Oct 26, 2012

    "Cadillac comes out with a sporty RWD sedan, Lincoln comes out with a sporty RWD sedan" The Catera was pure junk. Just read the posts whenever Murlee shows a Catera in scrap yard.

    • See 2 previous
    • Highdesertcat Highdesertcat on Oct 27, 2012

      @ranwhenparked "GM learned nothing from the X Car debacle." And to take that one step further, no one can deny that the Volt is the most advanced vehicle GM has ever put on the market, and the "Experts,whose livelihood is to praise vehicles, praised (it)." Initially, at least. Ahhh, we all had high hopes. But, like the X Car, the Volt never caught on because, like the X Car, it was the answer to a question never asked by the "general public, i.e. paying customers." Now, if the planet would suddenly run out of oil? Conceivably that could be a game changer.

  • 285exp I am quite sure that it is a complete coincidence that they have announced a $7k price increase the same week that the current administration has passed legislation extending the $7k tax credit that was set to expire. Yep, not at all related.
  • Syke Is it possible to switch the pure EV drive on and off? Given the wonderful throttle response of an EV, I could see the desirability of this for a serious off-roader. Run straight ICE to get to your off-roading site, switch over the EV drive during the off-road section, then back to ICE for the road trip back home.
  • ToolGuy Historical Perspective Moment:• First-gen Bronco debuted in MY1966• OJ Simpson Bronco chase was in 1994• 1966 to 1994 = 28 years• 1994 to now = 28 yearsFeel old yet?
  • Ronnie Schreiber From where is all that electricity needed to power an EV transportation system going to come? Ironically, the only EV evangelist that I know of who even mentions the fragile nature of our electrical grid is Elon Musk. None of the politicians pushing EVs go anywhere near it, well, unless they are advocating for unreliable renewables like wind and solar.
  • FreedMike I just don’t see the market here - I think about 1.2% of Jeep drivers are going to be sold on the fuel cost savings here. And the fuel cost savings are pretty minimal, per the EPA: https://www.fueleconomy.gov/feg/PowerSearch.do?action=noform&path=1&year1=2022&year2=2022&make=Jeep&baseModel=Wrangler&srchtyp=ymm&pageno=1&rowLimit=50Annual fuel costs for this vehicle are $2200 and $2750 for the equivalent base turbo-four model. I don’t get it.
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