The economic crisis raging in Europe, is not likely to disappear in the short term. As a result, manufacturers have begun to take measures to take into account the lower demand for their products.
Ford, meanwhile, will temporarily lay off 4,000 of its 6,200 employees at its plant in Valencia, Spain for 39 days in 2012, according to Adrian Schmitz, a spokesman for the Blue Oval's European operations of the group in Cologne, Germany.
"This downtime is related to the transition to the factory, and the expectation that demand will remain weak next year across the European industry," says Schmitz. "The drop in demand from Spain and Europe affects everyone in the industry," he added.
According to Spanish news site The Economist, move, Ford reduced the production of the plant, which will stop the Fiesta and Kuga will start producing the new (Escape in the U.S.) and Transit Connect van at the end of 2012, 34%.
Analysts Bankhaus Metzler Juergen Pieper said that the situation will only get worse. "It's definitely a sign of weak demand. It is only likely to worsen. Several manufacturers will see the worst sales next year and this will lead to more layoffs. "
Pieper added that Ford is in better shape than most competitors are required to deal with falling demand in 2012, because even if the entire European sales fell 1.4% in October, reported a 6.4% more than in October 2010. However, Ford sales in Spain fell by 6.7% in July.
PSA Peugeot Citroen has said it will cut up to 3,500 permanent jobs, and both Renault and GM have announced they will temporarily suspend some production lines in French and Spanish factories, respectively.
Story References: Bloomberg
Friday, November 25, 2011
Lay Off 4000 Workers At The Ford Plant In Valencia Because Of Reduced Demand
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