With new car demand slacking worldwide, Ford of Europe has announced it will be slashing production at two of its European plants. Beginning May 1st, Ford of Europe will be cutting one of three shifts at its Valencia, Spain production plant, with the company’s Saarlouis, Germany plant continuing indefinitely on a four-day work week.
During the first two months of the year Ford of Europe saw its new car sales tumble nearly 22 percent, with no end in sight. As such, Ford of Europe revealed that more production cuts could be just around the corner.
“Ford of Europe must return to sustainable profitability as soon as possible,” Ford of Europe CEO
Fleming said in a statement. “We will do whatever it takes to ensure the continuing viability of our business and further actions can be expected.”
In addition to the cuts, Ford will also be shifting its European production. Ford’s Saarlouis plant will be used exclusively for the production of the next-generation Focus, which means the factory will cease production of the Kuga in 2011. The Valencia plant will stop making the Focus when the new model comes on line in 2011, but will gain the next-generation Ford C-Max and will retain its Fiesta production, according to Automotive News.ref