Ford To Cut Thousands Of European Jobs, Close Factories In "Major Restructuring"

[jpd80]

And maybe USA

[Dr Smith]

I just read a bit more on the Genk closure, the workers bargained so hard that approximately 4000 of them averaged over $US160K in payout and the production shift to Spain delayed the switch to the updated Mondeo for a very long time across Europe and here as well. The cost overall of about $US750Mill.

And now with this months announcements it seems the French government and obviously Ford workers are ballistic at Ford management as there's an offer by Punch to buy the plant and take on a fair few workers but have decided to close it down completely.
However there is a reason and Ford has been burnt before, it last sold this plant to a German company which went bankrupt and under French law was forced to take back ownership, something it doesn't' want to happen again if the new suitor Punch buys the plant and keeps about half the workers.

[jpd80]

Originally Posted by Dr Smith

I just read a bit more on the Genk closure, the workers bargained so hard that approximately 4000 of them averaged over $US160K in payout and the production shift to Spain delayed the switch to the updated Mondeo for a very long time across Europe and here as well. The cost overall of about $US750Mill.

Context
Most of those workers had over 20 years service with Ford when they were sent down the road.
Ford is notorious for under funding its workers defined pension plans..It would be very hard for
most of them to find new jobs - not that Ford intended to screw its long term workers.(roll eyes)

And now with this months announcements it seems the French government and obviously Ford workers are ballistic at Ford management as there's an offer by Punch to buy the plant and take on a fair few workers but have decided to close it down completely.

However there is a reason and Ford has been burnt before, it last sold this plant to a German company which went bankrupt and under French law was forced to take back ownership, something it doesn't' want to happen again if the new suitor Punch buys the plant and keeps about half the workers.

Ford sold the Blanquefort plant in 2009 to a company that planned to use it to make
windmill components. But the deal collapsed, and Ford bought back the factory in 2011.
The facility received aid from the French government in 2013 in return for Ford’s pledge
to continue production there for five years.

Blanquefort has supplied 5- and 6-speed automatic transmissions to BMW, General Motors,
Tata Motors and several Chinese vehicle manufacturers.

There's about 850 workers at the plant and I suspect that most of them are also long term
with over 20 years service.......they risk losing significant pension benefits.