Ford To Outsource Forgings In Europe.(Ford Motor Co.)(Brief Article)

Ford Motor Co. is to outsource a large part of its forging operations and close its die-casting plant in Cologne according to a report in the Financial Times. The report says that in excess of 1,000 German workers will be affected

by the move, although Ford insisted that there would be no redundancies or lay-offs.

The FT article said that Ford has decided to start a new joint venture with Neumayer Holding, the German engineering group that produces forged and machined parts for the auto industry. The move is being interpreted as the latest phase of Ford's withdrawal from non-core industrial processes, in order to concentrate on vehicle assembly, distribution and marketing.

The FT says that the plan forms part of Ford's European transformation strategy that is designed to reverse operating losses of about $1 billion last year.

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