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Ford not closing any European Plants

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http://www.leftlanenews.com/ford-not-planning-to-close-any-european-plants.html

 

“There are lots of ways to tackle over-capacity without shutting a factory,” Ford global manufacturing chief John Fleming told Automotive News at a summit in Traverse City, Michigan.

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The nations which host said plants are probably threatening all sorts of hell if they try. So, reduce shifts and personnel.

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The nations which host said plants are probably threatening all sorts of hell if they try. So, reduce shifts and personnel.

 

which one would they close anyway? They are all vital.

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which one would they close anyway? They are all vital.

 

They are only vital so far as they all build important products, but there's nothing preventing some of those products from being combined into a single assembly plant other than politics.

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They also said they weren't going to kill Mercury....

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They also said they weren't going to kill Mercury....

yup 2076wcn.gif

 

if I've learned nothing else, it's that when Ford states something as "presently" or just doesn't state a specific future date/range,

it's only good FOR THAT MOMENT.

 

ex: when Ford said on Aug. 2 that they have no plans at present to bring Lincoln to China (Bloomberg)

that^

expired at 12:01am Aug. 3 and no longer has any meaning.

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While the US is pressing forward working plants hard, many with three shifts,Europe needs to trim production.

Right sizing doesn't mean closing plants it means strong control of costs - perfect in this situation and something

the local unions and Euro governments would have to admit has to happen.

 

I see the problem as over production assisted by subsidies, a form of pump and dump,

if Ford can show that reducing capacity is better in the long run for everyone,

then I see that happening rather quickly...

Edited by jpd80

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my comment above COULD also apply to the case of closing a plant in Europe, I fully expect a Fomoco spokesperson to say something about "AS A LAST RESORT" in about a month

with the Closure Announcement about another month after that...possibly

 

pre-edit

on 2nd thought, replace ^CLOSURE^ with "CONSOLIDATION"

much more 'Fordish'

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While the US is pressing forward working plants hard, many with three shifts,Europe needs to trim production.

Right sizing doesn't mean closing plants it means strong control of costs

I will disagree with you.

 

The big thing with shutting plants in the US was upper management admitting that they will NEVER sell as many cars in the used to back in the 1990s. Remember, that in the 90s they were within spitting distance of passing GM volume.

 

Upper management needs to figure out what a realistic volume is going to be for EU and then scale back to that point. How they will get there, ... Well that is another story.

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I will disagree with you.

I only reference USA as to what's happening now with less plants working to capacity.

Europe is in the doldrums but won't be like this forever, now is not the time to close plants.

Right sizing European plant capacity is what's needed, Ford's global pension plans are under funded

and we don't know what Euro govt assistance may be open to Ford for keeping plants open.

Edited by jpd80

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I will disagree with you.

 

The big thing with shutting plants in the US was upper management admitting that they will NEVER sell as many cars in the used to back in the 1990s. Remember, that in the 90s they were within spitting distance of passing GM volume

 

I don't think that's exactly what they were thinking. They were probably thinking that they weren't going to get back to that volume in the next few years and that if and when they needed additional plant capacity they would be better off building newer more flexible plants.

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I don't think that's exactly what they were thinking. They were probably thinking that they weren't going to get back to that volume in the next few years and that if and when they needed additional plant capacity they would be better off building newer more flexible plants.

 

But at the same time is it really worth it to have a plant open to dump a fleet car onto the market?

 

Ford sold 4,202,820 cars in 1999 in North America, it sold 2,143,101 in 2011...a drop of nearly 50%, but yet 2011 was its most profitable since 1998

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Right sizing European plant capacity is what's needed,

I concur.

 

I think the only way they will get there is closing some plants.

 

Remember, Ford has to "defend" its new bond rating. Not taking action in the next 6 months, when the projected losses for EU are >$500M, is a quick way to lose it !

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I concur.

 

I think the only way they will get there is closing some plants.

 

Remember, Ford has to "defend" its new bond rating. Not taking action in the next 6 months, when the projected losses for EU are >$500M, is a quick way to lose it !

 

But which ones would you close?

I'm sure that probably have valid reasons for being strategically balalced

and plenty of government clout and Union muscle behind them..

 

Valencia, Spain - Fiesta, Focus, Ka...soon to assemble Hybrid C-max

 

Cologne, Germany - Fiesta and Euro Fusion,

 

Saarlouis, Germany - Kuga, Focus

 

Craiova, Romania - Transit Connect, 2012 B-Max

 

St. Petersburg, Russia - Focus, Mondeo

 

Kocaeli, Turkey - Transit, Transit Connect

 

Genk, Belgium - Ford Mondeo, Ford S-MAX, Ford Galaxy

 

Southampton, UK - Transit

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But which ones would you close? I'm sure that probably have valid reasons for being strategically balanced

and plenty of government clout and Union muscle behind them.......

 

From an article in the Detroit News a few weeks back:

 

 

"Ford has not said it will close an assembly plant, though speculation is that facilities in Southampton, England, or Genk, Belgium, could be prime candidates.

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But which ones would you close?

I'm sure that probably have valid reasons for being strategically balalced

and plenty of government clout and Union muscle behind them..

 

Valencia, Spain - Fiesta, Focus, Ka...soon to assemble Hybrid C-max

 

Cologne, Germany - Fiesta and Euro Fusion,

 

Saarlouis, Germany - Kuga, Focus

 

Craiova, Romania - Transit Connect, 2012 B-Max

 

St. Petersburg, Russia - Focus, Mondeo

 

Kocaeli, Turkey - Transit, Transit Connect

 

Genk, Belgium - Ford Mondeo, Ford S-MAX, Ford Galaxy

 

Southampton, UK - Transit

 

You forgot to add the C-Max & Grand C-Max gas variants are also built at Valencia Spain. Also Valencia is not

assembling the Ka or the Focus. The Ka is assembled at Fiat's Tychy ,Poland factory alongside the Fiat 500.

 

From the July @Ford Europe newsletter http://www.at.ford.c...eat Britain.pdf

Fiesta production ends in Valencia - Ford’s Almussafes plant in Valencia, Spain has stopped building the Fiesta.

All Fiesta models will now be produced in Cologne, Germany.

The Almussafes plant will begin assembling the new Kuga at the end of this year and the new Transit Connect in 2013.

 

July 20, 2012 – Ford Russia . After the successful Ford Transit production launch in Tatarstan earlier this year, Ford Sollers announces further enhancements

 

to the Ford model line-up produced at its Elabuga facility – the Ford Kuga, Ford S-MAX, Ford Galaxy and Ford Explorer have now joined the assembly lines

 

in the “Alabuga” Special Economic Zone. For Russia market sales only.

 

FIL2531.jpg

 

http://media.ford.co...intatarstan.htm

Edited by MKII

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But which ones would you close?

I'm sure that probably have valid reasons for being strategically balalced

and plenty of government clout and Union muscle behind them..

 

Valencia, Spain - Fiesta, Focus, Ka...soon to assemble Hybrid C-max

 

Cologne, Germany - Fiesta and Euro Fusion,

 

Saarlouis, Germany - Kuga, Focus

 

Craiova, Romania - Transit Connect, 2012 B-Max

 

St. Petersburg, Russia - Focus, Mondeo

 

Kocaeli, Turkey - Transit, Transit Connect

 

Genk, Belgium - Ford Mondeo, Ford S-MAX, Ford Galaxy

 

Southampton, UK - Transit

 

let me update this list.

 

Valencia, Spain - C-max Kuga, sole EU source for the Transit connect ( Valencia is a Two line plant)

 

Cologne, Germany - Fiesta and Euro Fusion,

 

Saarlouis, Germany - Focus

 

Craiova, Romania - 2012 B-Max, likely next gen fiesta over flow production moved from Spain.

 

St. Petersburg, Russia - Focus, Mondeo

 

Kocaeli, Turkey - Transit HD and transit Custom LD,

 

Genk, Belgium - Ford Mondeo, Ford S-MAX, Ford Galaxy

 

Southampton, UK - Transit HD

 

Ford realigned the plants last summer. with the biggest news being consolidation of Transit connect production to Spain.

 

Genk and SouthHampton to me were big targets fro closure but all FOE plants are flex plants, modern and very efficient.

 

Reduce shifts at Genk from 2 to 1 shift, Cologne and Saarlouis from 3 to 2 shifts, simply doing this would reduce production capacity by 400,000 units.

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Hey Biker the Euro Fusion life is over. I read that Craiova Assembly Plant will build a second Fiesta based vehicle which I will guess could be the new EcoSport

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Hey Biker the Euro Fusion life is over. I read that Craiova Assembly Plant will build a second Fiesta based vehicle which I will guess could be the new EcoSport

 

sounds good to me. Cologne has capacity of 450,000 units on 3 shifts.

 

the next Ka/Start could be move to Romania as well.

Edited by Biker16

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let me update this list.

 

Valencia, Spain - C-max Kuga, sole EU source for the Transit connect ( Valencia is a Two line plant)

 

Cologne, Germany - Fiesta and Euro Fusion,

 

Saarlouis, Germany - Focus

 

Craiova, Romania - 2012 B-Max, likely next gen fiesta over flow production moved from Spain.

 

St. Petersburg, Russia - Focus, Mondeo

 

Kocaeli, Turkey - Transit HD and transit Custom LD,

 

Genk, Belgium - Ford Mondeo, Ford S-MAX, Ford Galaxy

 

Southampton, UK - Transit HD

 

Ford realigned the plants last summer. with the biggest news being consolidation of Transit connect production to Spain.

 

Genk and SouthHampton to me were big targets fro closure but all FOE plants are flex plants, modern and very efficient.

 

Reduce shifts at Genk from 2 to 1 shift, Cologne and Saarlouis from 3 to 2 shifts, simply doing this would reduce production capacity by 400,000 units.

Your last point seems tho be the best immediate response, I suspect Ford would be loath to eliminate plants without having existing plants reconfigured for multiple

products - a flexed plant doesn't mean that you can build multi products there immediately, establishing just in time supplier parks is essential and takes time to do.

 

I'd vote for cutting Southampton, reducing shifts as mentioned above but with a view towards

ultimately closing Genk and adding new lines at another plant for the EUCD/CD4 Triplets.

Edited by jpd80

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Reduce shifts at Genk from 2 to 1 shift, Cologne and Saarlouis from 3 to 2 shifts, simply doing this would reduce production capacity by 400,000 units.

One thing I had beat into me while at The Company, running a plant at below its "break even volume" is slow death and in fact is what is happening today !

 

Dropping a shift help, but with increased productivity, lost volume to competition, it is not likely that the volume will be need in the foreseeable future.

 

But which ones would you close?

I'm sure that probably have valid reasons for being strategically balalced

and plenty of government clout and Union muscle behind them..

 

Choosing the right plant to close is what Mullaly and the guys at WHQ get paid for !

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One thing I had beat into me while at The Company, running a plant at below its "break even volume" is slow death and in fact is what is happening today !

Mulally has taught Ford NA, not every cost is fixed, there are lot of thing you can control in production that can

allow plants to operate at lower volumes without being unprofitable, the exact opposite attitude to "Detroit wisdom"

Dropping a shift help, but with increased productivity, lost volume to competition, it is not likely that the volume will be need in the foreseeable future.

Ford wouldn't build a new plant to run at less than full capacity but an existing, mature and amortized asset is a different situation

Especially when those plants probably attract funding from respective European governments to remain open.

German plants are going to dedicated Fiesta and Focus prodution while the derivatives are going to Valencia.

Controlling production and staff at Genk and Southampton as the most likely outcomes for now.

 

 

 

Choosing the right plant to close is what Mullaly and the guys at WHQ get paid for !

And Ford's officials are saying and I quote,

 

 

“There are lots of ways to tackle over-capacity without shutting a factory,” Ford global manufacturing chief

John Fleming told Automotive News at a summit in Traverse City, Michigan.

Edited by jpd80

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...........And Ford's officials are saying and I quote,.....

 

The Ford response is a diplomatic way of saying that "we know we should close a plant but can't, because of the politics involved, so we're forced to drop back to plan B."

If this was the U.S., either Genk or Southampton would be gone.

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How would you close South Hampton without losing extensive British sales?

 

How do you close St. Thomas without hurting Canadian sales?

When you're losing 1 billion dollars/year in Europe, you gotta do something.

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