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.
The latest development in this ongoing saga that is the European economic crunch is word that Ford will shutter production of its Genk Assembly Plant in Belgium, eliminating some 4,300 positions. Ford could potentially reduce costs by $300 to $500 million annually as a resulting of closing the production facility. The Genk plant currently produces the Mondeo, S-MAX and Galaxy vehicles. Assembly of these vehicles would cease at the plant by the end of 2014.
According to a top researcher, labor costs for salaried employees at Chrysler, Ford and General Motors will surpass those of workers represented by the United Auto Workers for the first time next year. A report in Automotive News says the calculation was performed by the Center for Automotive Research (CAR), and made public at a recent conference.
The Detroit Free Press is reporting the Chrysler LLC will close four of its assembly plants from February 9-13 due to "economic conditions". The four plants to be idled are in Brampton, Ontario; Sterling Heights, MI.; Belvidere, IL and Detroit. The Brampton plant builds the Chrysler 300, Dodge Charger and Dodge Challenger, while Sterling Heights Assembly handles the Dodge Avenger and Chrysler Sebring. The plant in Belvidere builds the Dodge Caliber, Jeep Compass and Patriot, and the Detroit plan
It's no secret that Chrysler is in the fight of its life, and the Auburn Hills automaker is pulling out all the stops to keep the lights on -- even if it means closing the doors. Chrysler is shuttering all of its plants for one month, beginning December 19. In a short release to the media, Chrysler blamed the continued credit crunch as the main reason for the shutdown, and is trying to better-align its vehicle stock with customer demand. Dealers have notified the Pentastar that they've got plent
Chrysler has announced this morning that it's moving up the closing of its Newark, DE assembly plant. The closure was originally announced in February 2007 and was planned to happen later in 2009. Instead, the plant will be shuttered effective December 31, 2008. Newark is the home of the Chrysler Aspen and Dodge Durango SUVs, products whose sales have tanked this year. At this point, we're still trying to find out what this means for the Aspen and Durango. Chrysler has not said if production wil
Looks like that Moraine, Ohio plant that was going to be shut down next year is actually going to be shuttered on December 23rd, just in time for Christmas. This is the plant responsible for production of the GMC Envoy, Chevy Trailblazer and Saab 9-7X. The General had already slowed the plant to just one shift as SUV sales, particularly sales of old SUVs like these, continue to tumble, but the plant was expected to remain open until at least early next year. On Friday the remaining 1,100 workers
Gas prices in excess of $4 a gallon and a collapsing market for new home construction is triggering General Motors to undertake yet another round of restructuring and plant closings. The latest victim of the rapidly changing American automotive marketplace may be perpetual green whipping boy, the HUMMER brand. General Motors has just begun a strategic review of HUMMER. Ahead of today's annual meeting GM CEO Rick Wagoner has revealed that the HUMMER could either be strengthened or disposed of goi
In another blow to large vehicles in America – and American manufacturing workers – Chrysler is reportedly going to close two manufacturing plants next year. The plants are the Newark, Delaware plant where the Dodge Durango and Chrysler Aspen SUVs are built, and the St. Louis North factory in Missouri that manufactures the Dodge Ram full-sized pickup, according to Reuters. The plants will be shut down in the third quarter of 2008. Reuters doesn't mention the biodiesel aspect, but th
Hourly workers at two Tower Automotive plants have voted to accept pay cuts that will ensure their plants remain open as the supplier struggles to emerge from bankruptcy. Tower had asked a judge for the power to cancel union contracts and cut workers as it saw fit, but the acceptance of wage reductions at these two plants have prompted the company to withdraw its request.