Ford Ready To Make Deeper Cuts In Europe

Bertel Schmitt
by Bertel Schmitt
We’re committed to finding, researching, and recommending the best products. We earn commissions from purchases you make using links in our articles. Learn more here
ford ready to make deeper cuts in europe

The situation in Europe is “very volatile”, Ford CEO Alan Mulally told Reuters today in Berlin. “We don’t know whether it the European economy will stabilize or hit bottom or not because it’s continuing to decrease.”

Ford is ready to close more plants in Europe if economic prospects in Europe continue to deteriorate, Mullay said. The European economy “will determine what we do – if we do anything more. The most important thing is to match our production to the level of demand.”

Ford took the lead last month and announced the closure of three plants in Europe. The move was well received by financial analysts, who also criticized GM for its dithering.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments
Join the conversation
4 of 5 comments
  • Thinx Thinx on Nov 07, 2012

    Economic prospects in Europe are not going to improve until either Greece or Germany leaves the Euro. After that, things will get worse faster, and then start getting sorted out. The status quo is only slowing the process down and causing prolonged hardship (to everyone except the Eurocrats). Ford seems to be making the right call in this dismal scenario.

  • L'avventura L'avventura on Nov 07, 2012

    What you have to admire about Ford is that they are very expeditious with their restructuring. Its a necessary move to keep Ford's business alive, any parasitic costs can sap competitiveness in other markets. This is in obvious stark contrast to GM's European strategy. To close the three European factories cost Ford billions of dollars, its and expensive and a fleetly deceive move. For Opel, any restructuring would also cost billions, it could also be sold, yet GM's entire European strategy has been stuck in this lower netherworld of Limbo.

  • Dimwit Dimwit on Nov 07, 2012

    Not only GM but PSA, FIAT and Renault as well. It looks like 2008 all over again. Ford steps up, takes harsh medicine and comes out the other side prepared for battle while the others fiddle and burn. I can see Ford being number two in Europe in a few years as the rest crash.

  • Ihatetrees Ihatetrees on Nov 09, 2012

    The Eurozone has major issues. The Euro as a currency look dicey through 2014.

Next