US car giant Ford cut further into its European work force today, scrapping 3,000 jobs at its main Belgian plant and cancelling promised investment because of the deteriorating car market.
In reaction, unions blocked deliveries of new supplies to the Genk plant, forcing management to interrupt production. More extensive union action was likely over the coming days.
“We’ll hit Ford where it hurts,” said union representative Ludo Copermans.
Prime Minister Guy Verhofstadt immediately convened a meeting with Ford management, one of the biggest private employers in Belgium. Almost 10,000 people work at the factory.
Ford said it was forced to take action because of the depressed market.
“We need to adjust our business to the new realities in the European industry,” said Ford of Europe President Lewis Booth. “We are taking steps to accelerate cost reductions.”
In other cost-cutting moves, Ford’s German division plans to trim about 1,700 jobs, or 6% of its work force, by the new year.
Ford has suffered big losses in Europe have where it is losing out predominantly to Japanese and Korean competitors, but is also underperforming against its chief rival General Motors – Vauxhall in Britain – which has managed a slight increase in western European market share.