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. 

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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. 

Source: Ford