What Do Ford’s European Factory Closures Say About the Market?
Ford’s (NASDAQ:FORD) Romanian factory is schedule to come to a grinding halt lasting thirteen days this coming November. According to Reuters, the car-maker has done this is the third month in a row that has included factory shutdowns — a result of the weak European demand.
“We will stop car production for thirteen days and engine production for eight days in November. The eight day stoppage in engine production is caused by low demand for vehicles and overlaps with the period of suspension of car production,” said Ford’s spokeswoman in Romania, Ana-Maria Timis. This marks a notable difference from previous months where the factory had only ceased car output.
Nearly all of the 4,000 workers at the factory will be affected, though 80 percent of their wages will still be paid. This comes in the same year as the automaker announced closure on a more permanent basis of its Broadmeadows and Geelong production facilities in Australia — scheduled for October of 2016 according to Drive.com. CEO Bob Graziano said that manufacturing was “no longer viable for Ford in Australia in the long term,” and noted that “The decision [to close] was not made lightly. We understand the very real impact of this decision.”