Ford confirms closure of two UK plants

The actions include the planned closure of two UK facilities next year – Ford's assembly plant in Southampton, and stamping and tooling operations in Dagenham. Ford also plans to end production at a major assembly plant in Genk, Belgium, by the end of 2014. The three facilities currently employ approximately 5,700 people. Ford CEO Alan Mulally said: "We recognise the impact our actions will have on many employees and their families in Europe, and we will work together with all stakeholders during this necessary transformation of our business." The company said the announcement addressed manufacturing overcapacity stemming from the more than 20% drop in total industry vehicle demand across Western Europe since 2007. New vehicle sales in the region had reached a nearly 20-year low this year and were expected to remain flat or fall further next year. The plan includes: * The closure, in 2013, of two facilities in the UK – the vehicle assembly plant in Southampton, which builds the current Transit; and stamping and tooling operations in Dagenham. Ford said its UK operations will remain a centre of excellence for powertrain development and production. This includes plans to add a new next-generation, low-CO2, 2.0-litre diesel engine in Dagenham that will power future Ford vehicles from 2016. The engine will be developed at Ford's Technical Centre in Dunton, Essex. Additional investment also is expected at Ford's Bridgend Engine Plant in South Wales to support ongoing high volumes of petrol engine manufacture Manufacture of Transit will be consolidated in Kocaeli, Turkey. * The closure on the company's Genk plant in Belgium, ceasing vehicle production there by the end of 2014. Production of the next-generation Mondeo, S-MAX and Galaxy would move to Ford's assembly plant in Valencia, Spain