Boston, MA 10/30/2013 (wallstreetpr) – It seems that European automotive market is yet to turn around. There seems to be a dwindling trend in demand for four wheelers in Europe. And to counter this reduction in demand and reduce the overhead costs Ford Motor Company (NYSE:F) has decided to stop production in its Romanian factory for 13 days. Alongwith this stoppage, company also plans to have an eight day stoppage for engine production too. And all these are linked to a reduction in demand for automobiles as well as engines.
For Ford, this seems to have become a trend for its Romanian factory as it is for the third month in a row that plant has come to a standstill in response to poor demand by European nations for the cars and engines. But in last two months, only vehicle production had been stopped. But this time around its both vehicles as well as engine production that is being halted. Some experts are of opinion that seeds of this were sown in 2008 crisis itself. During the downturn, Ford had made a strange decision to buy a struggling automobile manufacturer Automobile Craiova. As of now, company uses its target’s plant to produce B-Max model since last year. And company in its full quota of shifts produces 370 cars and 1000 plus engines everyday. But with the planned closures, there would be stalling of production of about 4800 cars and more than 8000 engine trains.
There are more than 4000 people employed by the Romanian facility. During the planned shutdown, these workers are set to receive almost 80% of their normal wages. In recent times, Ford has gone ahead with its decision of rationalization of production facilities and has already closed two ancillary plants in England and is also planning to shut car assembly in Belgium.
