By on November 7, 2012

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.

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5 Comments on “Ford Ready To Make Deeper Cuts In Europe...”

  • avatar

    Wonder if Mulally is staying on at this point to clean up Europe so that Fields can focus on NA and have as clean as canvas as possible to work with when the transition takes place. Based on past management I figured that Ford would be the first to take decisive action in Europe and set the bar for the others to follow (which they will have too, loans, this and that, will only kick the can down the road, while your competitors gain effencies that will only leave you that much more behind). Ford’s actions also speak to the relative health of GM vs. Ford, even after the bankruptcy.

  • avatar

    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.

  • avatar

    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.

  • avatar

    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.

  • avatar

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

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