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Ford Acts Fast in Europe (10/25/12)

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  1. slower growth1:42
  2. Ghent1:20
  3. European debt crisis0:31
  4. Scion3:29
  5. previous forecast0:58
  6. new car sales0:34
  7. Southampton1:09
  8. import vehicles2:35
  9. European auto2:49
  10. auto workers3:04

Thu, 25 Oct 2012|

Ford acts fast in Europe, sees mid-decade profit | Scion motivates young entrepreneurs | Volvo cuts

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Automatically Generated Transcript (may not be 100% accurate)

The voting. And prudent decision. He's. -- -- that you. And that includes closing three plants and cutting thousands of jobs. Ford's survival plan in Europe. Welcome to the newscast on this Thursday. We all saw it coming European debt crisis has absolutely crushed new car sales in the region. And today. Four and became the first automaker to really stick its big toe into those chilling unsettled economic waters. Announcing a massive transformation. Plan. One reason the automaker now expects to lose more than one point five billion dollars in Europe this year. The previous forecast. Was a billion dollar loss. As a result Ford announced today it will close to UK facilities next year. A van assembly plant in Southampton. And a stamping and schooling plans in dog and out. At follows yesterday's announcement to end production at a huge assembly plant in Ghent Belgium by the end of 24 team. The move will reduce capacity by 355000. Vehicles. Some 6200. Jobs will be lost. Ford's CEO Alan -- I think we're gonna -- things and about this announcement today is that there are really trying to reflect the reality of the slower growth especially in what you're going forward and that's why we need to move decisively out their eyesight are our capability to. The real demand and have that flexibility to grow as we come back especially. The higher growth rates them. And that Russia and Turkey and Eastern Europe. So just how will this restructuring. Help for. Slashing production is expected to yield 500 million dollars in what Ford calls gross annual savings. The blue global expects to be profitable in Europe by mid decade. And it is targeting a long term operating margin of 68%. Despite today's news. Ford Europe boss Stephen -- Believes that if the European market rebounds. The company would still have the flexibility. To increase production or import vehicles to meet the man. Well some people sitting mustache. Important and useful and other problems. Our Jesse's Schneider is taking an in depth look at the differences between the US and European auto market. You can watch part one of these special by the numbers series on this morning's first shift. Part two comes your way tomorrow. Back to Belgium for a moment in the news keeps getting worse for auto workers there following yesterday's Ford announcement. Volvo is lowering its production volume at its factory in -- next year. 54 cars will be built per hour instead of 59. As a result 300 agency workers will not get their contracts renewed. We'll leave it today with news from Toyota's Scion brand. It is launching a small business incubator competition for young people who are full of ideas. But short of cash. The program's called motivate begins today in his young entrepreneurial artists musicians designers in others. Vying for a chance to get start up funding from side. Fifteen semifinalists. Will compete for ten winning spots that will each receive 101000 dollars. A new side and vehicle and a six month venture ship. From the successful. Small business. As always we thank you for watching. You know to see you right back here tomorrow.

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