February 2013 vehicle sales in Europe limped to their lowest levels ever in the last 25 years and Ford is about to shell out US$750,000,000 by the end of 2013. It will be part of a severance deal to their workers as Ford moves out of production at its manufacturing plant in Belgium.
We have read reports that Ford has reached this deal with about 4,000 workers and their unions that will allow it to start the moves to close this struggling plant altogether. Currently it builds the mid-sized vehicles like Mondeo, Galaxy and S-Max people movers.
The plant in Belgium is one of three similar facilities that Ford will be looking to close over the next year and a half. Ford has said that it is planning to cut production capacity in the European market by up to 18%.
Ford has been reporting forecast losses of up to US$2 billion in Europe this year as it continues to combat the declining demand for its vehicles. They say that this is stemming from the continuing European economic slump.