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Ford looking at asset sales in Europe

 
5 2,012 views Nov 27, 2008

Ford is looking for a buyer for its five-speed automatic transmission plant near Bordeaux in the South of France

Ford is looking for a buyer for its five-speed automatic transmission plant near Bordeaux in the South of France

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Ford of Europe is currently in talks with an undisclosed European company regarding the sale of one of its factories in France. The French government is eager to ensure a positive solution for the factory's 1,600 workers, and Ford of Europe's CEO John Fleming has assured that the mysterious European company has long-term investment plans for the plant, and that a large number of jobs will be protected.

The factory in question, located in the southwest of France near Bordeaux, currently produces five-speed automatic transmissions for Ford vehicles. These transmissions find their way into cars produced in Ford's American domestic market, as well as in overseas markets such as Australia and Thailand.

The European company in negotiations with Ford will continue to produce automatic transmissions if the deal goes through, although whether or not any jobs will be lost as a result of the changes remains uncertain. The negotiations are expected to be completed by the second-quarter of 2009, and Ford will end production at the plant in mid-2011, reports Automotive News.

Ford is selling the plant due to high export costs, and an upgrading of transmissions for many of its vehicles. Currently, the five-speed automatics built at the plant are used in a number of Ford models, including the Mustang, but a switch to six-speed transmissions is making the plant obsolete.

In this way Ford of Europe's actions are not motivated by a lack of liquid cash, and earlier this month we reported that despite the global automotive slump affecting the world, Ford of Europe actually made a profit in the third-quarter, and expects to remain profitable in 2009.



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Comments (5)

  1. ma_Edward avatar Edward Posted: 11/27/2008 2:28pm PST

    What idiot managers in Ford!!!!! Instead of selling off key assets such as plants, you can get money by just getting a loan with the plant as collateral.
     
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  2. ma_NaBUru38 avatar NaBUru38 Posted: 11/27/2008 6:18pm PST

    "Ford is selling the plant due to high export costs"

    By 2011, the euro will have become weak compared to the US dollar. Slow move.
     
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  3. ma_Chris avatar Chris Posted: 11/28/2008 9:41am PST

    nab, where do you get that? i don't see the european market crumbling nearly as badly as the american economy.. and i think the last 20 years of differed credit in the USA has given people a false sense of market strength..

    the big point here is the cost of retooling a transmission plant is often too expensive to justify it. GM is doing the same thing with their 5 speed transmission plant in Windsor, Ontario.. instead of retooling, they're just closing it down and opening a new 6 speed plant.

    thats likely what ford is doing.. moving the transmission production to a new facility that is set up for 6 speed manufacture.

    edward: read the article.. ford of europe doesnt need the cash. they dont need the plant. it makes 5 speed transmissions. everyones moving to 6 speed transmissions at the least. since when do you get more money mortgaging a property than selling the thing outright? i want to move to where ever you live.
     
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  4. ma_NaBUru38 avatar NaBUru38 Posted: 11/28/2008 12:42pm PST

    "i don't see the european market crumbling nearly as badly as the american economy.. and i think the last 20 years of differed credit in the USA has given people a false sense of market strength.."

    You're right about that, Chris, but I was talking about the currencies, not about the financial markets or whatever.
     
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  5. ma_Chris avatar Chris Posted: 11/29/2008 1:54pm PST

    nab.. the currencies are tied directly to the market success. no one has gold backed currencies any more. its tied to GDP.. which is also the definition of recession and depression. point being is.. the US dollar is going to be comparatively weak for a while. get used to it.
     
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