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NEWS
Plant closure won't affect Mondeo here, says Ford
European Ford factory shutdown will have no impact on next Mondeo's later than expected Australian arrivalFord is the latest car-maker to restructure its manufacturing operations in the face of slowing European sales, but says the closure of its Belgian plant will not affect the Australian release of its next-generation Mondeo, which remains due here later than expected in early 2014.
The Blue Oval announced overnight that the Genk factory – which produces the Mondeo, C-Max, S-Max and Galaxy – will close by the end of 2014 in a move that will axe about 4300 jobs as part of a wide-ranging European “transformation plan”.
Although the plan is yet to be agreed by unions, Ford said it will shift production of all vehicles to other plants from Genk, which has operated at less than 70 per cent of capacity since last year, including the next-generation Mondeo, S-Max and Galaxy to Valencia in Spain, and the C-Max and Grand C-Max to Saarlouis in Germany.
“In terms of Mondeo and Genk, we’ll continue to source Mondeo from Europe – whichever plant there produces it is where we’ll get it from,” Ford Australia Communications & Public Affairs Director, Sinead Phipps told motoring.com.au.
“Mondeo currently comes from Genk and that is the only vehicle we get here which comes from that plant. If it moves from that plant for any reason, our production source will move to the other European plant.”
Asked when the sleek new Mondeo, which is already on sale in Europe and the North America (where it’s badged as the Fusion) and had been expected on sale in Australia next year, was now due in local showrooms, Ms Phipps said: “It looks to be early 2014 at this stage”.
Production of the new Mondeo was to have commenced at Genk next October, however, current Mondeo production has fallen to about 90,000 per annum – down from about 300,000 in 2000.
“The proposed restructuring of our European manufacturing operations is a fundamental part of our plan to strengthen Ford's business in Europe and to return to profitable growth,” said Ford of Europe boss Stephen Odell.
Ford said the plan was a result of a 20 per cent drop in total industry vehicle demand in Western Europe since 2007, with new-vehicle sales reaching a 20-year low this year. It expects the European market to remain flat or fall further next year, but to rebound over the next few years.
“When you include Russia and other fast-growing markets, the total European vehicle market is expected to increase by 20 per cent over the next five years,” said Ford President and CEO Alan Mulally last month.
Ford said it will make further announcements later this week following a meeting with unions at its Southampton plant in England, leading to speculation a further 500 jobs could be cut by shifting Transit van production to mainland Europe.
Ford announced a $US404 million pre-tax operating loss in Europe during the second quarter of this year in July, when it told shareholders to expect a full-year loss in Europe of more than $1 billion.
Yesterday’s news comes as Ford and GM prepare to release third-quarter earnings reports next week. GM has accumulated nearly $17 billion in losses in Europe since 1999.
At the same time, Daimler AG has warned it will fall short of its full-year profit forecast by about $US1.3 billion due to “significantly more difficult market conditions”.
“Due to the economic challenges, Daimler will not match the high prior-year EBIT (earnings before interest and taxes) in full-year 2012, but will still post good earnings once again,” said CEO Dieter Zetsche in a statement today.
Daimler plans to regain the title of top luxury brand it lost to BMW last year, when it was also out-sold by Audi, by 2020. It has announced plans to launch 10 new models by 2015, when it expects to sell 1.6 million vehicles – up 25 per cent on last year.
Europe’s number one car-maker Volkswagen, meantime, posted a 20 per cent reduction in third-quarter operating profit this week. Despite a 27 per cent sales increase, operating profit fell by one-fifth to $US3.04 billion. However, VW CEO Martin Winterkorn restated the company’s intention to increase sales and revenue and to match last year's record operating profit for the group in 2012.
“Although the times aren't easy, it's up to us to systematically continue along our chosen path,” said Dr Winterkorn in a statement yesterday.
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Written byMarton Pettendy
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