News by Brand
Home>Topics>>Ford Acts Fast in Europe (10/25/12)

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

Get Adobe Flash Player to see this content.


  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


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.

Related Videos:

  1. Chrysler 200's Surprise Appeal (7/29/14)

    Tue, 29 Jul 2014

    Volume car is luring buyers from Lexus, Cadillac, brand chief says; Toyota's fuel-cell future; Musk as 'Simpsons' star.

  2. Ford Hikes F-150 Prices (7/28/14)

    Mon, 28 Jul 2014

    Eight polling that Tug of war what heavy duty YouTube has poured threatening to life. You're watching auto news now. Good to see you on this Monday. I'm Tom back for Ford and Chrysler the stakes couldn't be higher. According to true cart dot com heavy duty pickups represent 23%. Of all pick up sales in the US. In one of the main reasons to buy a big truck. Towing capability. a battle is raging between Ford and Chrysler's ram Brad. Over who can claim best in class Ford is threatening legal action if keeps claiming its pickups have besting class We're talking so called fifth wheel or goose neck trailer is connected in the pick up that. So here's the issue. Ford says 2015. F 454. By four crew cab can 31200. House. That's about 12100 pounds more than the highest capacity 3500. Which is rated at 30000. Pounds. But rim says the trucks are not even in the same class. It's is the F 450 is a class four pick up in fact the only class four pick up on the market. says the 3500. Actually competes against the F 350. In GM's 3500. Heavy duties. Reporter Larry tells us Ford does something no other automaker does when setting its maximum payload for the F series. It removes items like the radio. The spare tire the Jack. In the center console in order to produced the maximum number for its payload that's a questionable practice because a component truck over. Into another class. Larry says under the system used by other auto makers the F 450 would be considered class war. For more story in today's print and digital editions of Automotive News. Ford is raising prices on the new one in fifteen aluminum body F 150 pick up. Like 340 dollars to 3385. Bucks. The king ranch sees the biggest price increase over the 2014 model. Ford however has upped the standard equipment in all models of the truck for example to information screens are standard. Our Richard true it is also reporting the auto maker is trimming the number of F 150 models from eleven to five. With the new truck arrives this fall popular name plates such as the raptor in limited will be gone. Dealers started ordering the pick ups today. More business may be on the way to service based in GM dealerships. That's because the auto maker is offering buyers of its 2015 models for monthly vehicle diagnostic reports through OnStar. The move also allows customers to sign up to receive maintenance notifications from their stores. Both services will be offered at no charge for five years under a plan named OnStar basic. Previously. They were available only to paying OnStar subscribers. GM says that customers who are emailed me notifications from their dealerships. Come in for two additional service visits a year on average. Compared with customers who don't receive that. Cash for clunkers a phrase that was all the rage five years ago this month. Officially known as the car allowance rebate system clunkers was a lifeline at a desperate time in the US auto industry. US sales in June of 2009 dropped 28%. wasn't so lawful because every other month that your have been worse. But thanks to clunkers which provided consumers as much as 4500 bucks to trade in an old gas guzzler for a more fuel efficient new vehicle. July 2009 sales were off just 12%. In August sales that year were up 1%. In the end nearly 700000. Vehicles were traded in through the two point 85 billion dollar federal program. Have a great day everyone. We'll see you back here tomorrow.

  3. Japan 3 Product Preview (7/25/14)

    Fri, 25 Jul 2014

    Our look at what's ahead for Nissan, Honda and Toyota; what has Mercedes saying 'ah;' Crain joins Hall of Fame.

  4. GM Near End of Recall Push (7/24/14)

    Thu, 24 Jul 2014

    Safety blitz 'substantially complete' Barra says; Ford's Europe product plan; Acura supercar fire; Keith Crain's big night.