According to a report from Reuters, Ford is shelling out $750 million in a severance deal that will see the automaker close its facility in Genk, Belgium. The automaker reached this deal with the 4,000 hourly workers employed at the plant last week, which means the company will pay out an average of $187,500 per worker.

Ford is still negotiating with the 300 salaried workers at the factory, which currently produces the Mondeo sedan. All told, Ford expects to lose around $2 billion in Europe thanks in no small part to the region's ongoing economic downturn, and two more plants are scheduled to be shut down in Europe this year. The company will log its $750 million payout under "special items" for this quarter.

As you may recall, Ford took a similar path in the US back in 2009 when the domestic market took a spill. Back then, the company shelled out around $50,000 per employee with at least one year of experience, plus either $25,000 toward a new car or an extra cash payment of $20,000. It would seem the cost of closing plants in Belgium is a much harder pill to swallow than in the States...


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    • 1 Second Ago
  • 50 Comments
      AngeloD
      • 2 Years Ago
      Nearly $200k for each of these European workers? That\'s a scandal. A company would be nuts to ever open another plant in Western Europe.
        AntBee
        • 2 Years Ago
        @AngeloD
        That's why the Western European manufacturers are all or have all opened plants over here in North and South America! The only one who hasn't, so far, is Porsche.
      jf.bouchard
      • 2 Years Ago
      By "pay out per worker", does the article mean that Ford will hand a large check to each individual worker? Or does the article mean that the total sum of all expenses related to the closing of the plant (administrative fees, fines, losses, severage packages etc) if split into all employees results in this "per worker" figure? I have a hard time believing people will receive that much money personally just because their employer closes a plant. I'm in North America so that makes no sense to me.
      • 2 Years Ago
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      turbomonkey2k
      • 2 Years Ago
      Really makes you wonder how raw a deal it must have been to manufacture in Belgium if Ford was willing to pay the 3/4 of a billion dollar ransom to get out of the deal. Clearly Ford felt the need to git while the gittin was good.
      ngiotta
      • 2 Years Ago
      I only got 1 week of pay for each year I had been employed the one time I got severance. Who says unions aren't unreasonable?
        PiCASSO
        • 2 Years Ago
        @ngiotta
        I got 2 weeks with my company that shut down. Nothing compared to this...
      • 2 Years Ago
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      protovici
      • 2 Years Ago
      And I don't feel one ounce or sorry for those people. $187K to get laid off..... yes please!
        hduplease
        • 2 Years Ago
        @protovici
        and i was laid off 11 times last year by 11 different companies and never once received any severance,
      KATHI AND JOHN
      • 2 Years Ago
      and we get 2 weeks pay ....thats fair
      • 2 Years Ago
      [blocked]
      rationaltactics
      • 2 Years Ago
      $187,500 per worker! Are you kidding me? I wish my company would let me go for that amount!
      • 2 Years Ago
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        • 2 Years Ago
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      GasMan
      • 2 Years Ago
      A perfect illustration of everything that is wrong with Europe, politics, the auto industry, and unions. Of those, the unions are the least to blame because all they did is ask, ... and bribe some politicians,... and threaten to strike all over Europe. Ok, maybe they are not so innocent.
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