By IANS,
Chicago: US automaker Ford Motor Co. will close three of its plants in Europe in a bid to cut costs.
The company is expected to lose $1.5 billion in Europe this year, Xinhua reported Thursday.
“While we are facing near-term challenges in Europe, we are fully committed to transforming our European business,” Ford CEO Alan Mulally said.
It will “match production to demand, improve revenue through new products and a stronger brand, take advantage of opportunities to profitably grow our business,” he said.
Ford will cut about 6,200 staff and shift production from Genk and Southampton to other European plants, saving about $500 million yearly, the company predicted.
The company had been under pressure from investors to curb steep losses in Europe.
The cost of closing plants will likely top $1 billion, analysts projected. Ford estimated it will return to profitability in Europe by mid-decade.