Chemistry Board

Ford To Cut 5700 Jobs

Ford will shut three European plants, its first factory closings in the region in a decade, and cut about 5,700 jobs to stem losses that the company predicted today will exceed $1.5 billion in 2012.

The shutdown of two U.K. factories and a plant in Belgium will remove production capacity for 355,000 vehicles, or 18 percent of the carmaker’s total in the region, Dearborn, Michigan-based Ford said in a statement today. The moves will yield gross annual savings of $450 million to $500 million annually, the automaker said.

Ford said today that third-quarter pretax profit and earnings per share, excluding special items, will exceed the second-quarter results, even with a substantial loss in Europe.

The European sovereign-debt crisis is set to lead to the biggest annual drop in car sales in 19 years. Manufacturers such asPSA Peugeot Citroen (UG), General Motors Co. (GM)’s Opel brand and Fiat SpA (F) have responded by shutting or outlining plans to close factories in an effort to restore earnings. 

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