This week was a though one for Ford Europe and its employees. The American manufacturer decided to shutter its Genk, Belgium, car assembly plant, in a struggle to keep up with European declining car market.
Even if estimated annual capacity at Genk is around 270,000 units, last year production totalled just 178,127 units, meaning a 66% rate of capacity utilisation. This year capacity utilisation at Genk is forecast to decline further to around 50% as production falls to 134,000 units.
On usual situations, capacity utilisation needs to be around 80% for a plant to be healthy and around the point of effectiveness.
Ford also shuttered Transit cab-chassis factory in Southampton England, and tooling and stamping units at Dagenham, near London.
Ford is taking decisive action to address the problem of losing money in Europe. In the face of a declining west European car market, it’s a big step to removing overcapacity and lowering the company’s European costs.
Source: Ford
