This week was a though one for Ford Europe and its employees. The American manufacturer decided to shutter its Genk, Belgium, car assembly plant, in a struggle to keep up with European declining car market.
Even if estimated annual capacity at Genk is around 270,000 units, last year production totalled just 178,127 units, meaning a 66% rate of capacity utilisation. This year capacity utilisation at Genk is forecast to decline further to around 50% as production falls to 134,000 units.
On usual situations, capacity utilisation needs to be around 80% for a plant to be healthy and around the point of effectiveness.
Ford also shuttered Transit cab-chassis factory in Southampton England, and tooling and stamping units at Dagenham, near London.
Ford is taking decisive action to address the problem of losing money in Europe. In the face of a declining west European car market, it's a big step to removing overcapacity and lowering the company’s European costs.
Related Articles
Leave a Comment
Latest Car News
Peugeot Onyx Concept, the main attraction at 201 Goodwood Festival of Speed
Ford Transit Van stars at 2013 Cannes Festival
ABT Audi R8 V10 introduced
VIDEO: Aston Martin CC100 first official movie
Study: Driverless cars trusted by more than 50 percent
Ford Fiesta ST of to a good start with 3000 orders
Related Specs
2005 Ford '40 GT
Engine: All Aluminum, MOD V8 w/Dry Sump Lubrication, Power: 410.1 kw / 550 bhp @ 6500 rpm, Torque: 677.91 nm / 500 ft lbs @ 3750 rpm2003 Ford 427 Concept
Engine: V10, Power: 440.0 kw / 590 bhp @ 6500 rpm, Torque: 690.11 nm / 509 ft lbs @ 5500 rpm2001 Ford 49 Concept
Engine: V8N/AN/A2007 Ford Airstream Concept
Engine: HySeries Drive Plug-In Hydrogen Hybrid Fuel CellN/AN/A2004 Ford Bronco Concept
Engine: Ford Duratorq TDCi Turbodiesel Inline-4, Power: 132.7 kw / 178.0 bhp @ 4000 rpm, Torque: 330.82 nm / 244 ft lbs @ 1800 rpm
New Vehicles
2014 BMW M5 and M6 Competition Package introduced The essential BMW M5 and M6 models are driven by a 4.4-liter V8 engine with patented M TwinPower Turbo technology and a peak output of 560 hp in standard ...
Concept Cars
Aston Martin CC100 Speedster - The Centenary Concept Aston Martin has pulled the wraps off the CC100 Speedster Concept car. The new prototype marks the company's 100th birthday. The name stands for Concept ...
Custom Cars
2014 Lexus IS modified by TRD The guys from TRD (Toyota Racing Development) have created a special package for the 2014 Lexus IS. On the outside, the Japonese sedan comes with a new ...
Green Autos
Volvo C30 Electric gets updated and recharges in 1.5 hours From 0-70 km/h in 5.9 seconds and a full recharge in only 1.5 hours - the first electric cars emerging from the strategic partnership of Volvo Cars and ...
Future Cars
Ferrari CEO Amedeo Felisa promises more investment in research and development Ferrari’s CEO Amendo Felisa spoke to the Formula Ferrari press conference today to explain the work the company has been doing to increase the performance ...
Market News
Volkswagen sold 5,74 million vehicles in 2012, up 12.7 per cent The Volkswagen Passenger Cars brand closed 2012 with a new record, delivering 5.74 million vehicles to customers, +12.7 per cent comparing with 2011 results. ...
Gadgets
Land Rover launches driving app for new Range Rover Land Rover North America announced the release of the brand's first ever app designed to showcase the fourth generation Range Rover vehicle. ...
Various News
Skoda UK signed Ed Clancy as brand ambassador SKODA UK has signed double Olympian Ed Clancy as a brand ambassador. The partnership with the pro cyclist, who won gold in the team pursuit at last summer’s ...
Videos
Video: Aston Martin teases a new concept As you know, Aston Martin is celebrating 100 years since the brand was founded. To celebrate this, the British car maker has launched a special teaser ...
Motorsports
Aston Martin to compete in the Nurburgring 24 Hour with the V12 Vantage GT3 The British car maker Aston Martin is about to compete in this weekend Nurburgring 24 Hour race along with a V12 Vantage GT3. The car that will go on ...