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Ford to Cut European Costs, Capacity While Investing in German Plant

03/16/2009
Ford Motor Company will invest hundreds of millions of dollars in its plant in Cologne, Germany, while making moves to cut costs at plants throughout Europe, according to the Associated Press (AP). The Cologne plant will share production with the factory in Craiova, Romania, of a new small-displacement EcoBoost gasoline engine; AP reports that a German government official puts the company's investment there at approximately US$260 million but that Ford would not confirm the dollar amount. AP also says that Ford will institute four-day workweeks, cut shifts, and cut production of certain models at other factories in Europe in order to avoid job losses. "Cutting capacity, reducing costs, and safeguarding our future product plans are essential actions for Ford of Europe to sustain a viable business for the future," says John Fleming, chief executive of Ford of Europe, as quoted by AP.

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