Ford will close three European plants at a cost of $1.5 billion - by Jerry Hirsch

Ford Kia

Ford Motor Corporation has launched a broad restructuring of its European operations, a move that will shutter plants in England and Belgium, cost  about 6,000 workers their jobs and will incur a $1.5-billion loss for its business in the region this year.

“The challenges facing the European car industry have become more structural than cyclical in nature and require decisive action. The actions we are proposing come after extensive review and consideration,” said Stephen Odell, chief executive of Ford of Europe.

The automaker said its business in the U.S. and elsewhere is strong enough to offset the money it is bleeding in Europe. Excluding one-time items, its third-quarter 2012 pre-tax profit and earnings per share will top this year’s second quarter “despite the substantial loss in Europe,” Ford announced.

Previously, Ford said it expected to lose about $1 billion in Europe this year. Ford will release its full third-quarter financial results on Oct. 30.


Read more: Ford will close three European plants at a cost of $1.5 billion - latimes.com