With a slower European Automobile market, Ford Motor Company (NYSE:F) is likely to cut the production of its bestselling European car, Fiesta hatchback. Ford will halt the production in its Cologne plant, Germany.
Ford Motor Company (NYSE:F) will halt the assembly of Ford Fiesta Hatchback for as many as 11 days between October and November. The automobile manufacturer cited “lower demand” to be the primary reason of production cut. Despite of a loss in demand in France, Germany, and Italy, Ford’s overall sales were up 1.8% in the European market during August.
Ford Motor Company (NYSE:F) will apply to avail subsidies under the “Kurzarbeit” short-work program scheme run by the German government. The halt is likely to affect 4,000 workers out of existing 17,300 workers working at the Cologne plant. Several struggling companies practiced the subsidy option during the recession in 2008-09.
Earlier, Ford Motor Company (NYSE:F) announced an increase in sales in the European market after six successive years of declining car sales. The company recorded 7% increase in car sales during the first eight months of the year. The increase is lead by the growing demand of Kuga sports utility vehicle, which has received a tremendous response in Europe. Ford reported net sales of 762,900 vehicles in Europe in the first eight months unlike 712,400 in the same period previous year. At the same time, Ford sold 61,700 vehicles in August this year.
In addition to it, Ford Motor Company (NYSE:F) has achieved success in attracting customers with large fleet orders. Charter Communications, Inc. (NASDAQ:CHTR) placed a huge fleet order of 800 new 2015 Transit Vans. The increasing demand in Europe is good news after a string of recalls for the automobile maker.
This article has been written by Prakash Pandey.