Ford Closes its French Transmission Plant
Recently, it has transpired that Ford plans to list for sale its French production facility specialized in manufacturing of gearboxes – Ford Aquitaine Industries (FAI) – because of a falling demand for compact automatic gearboxes in Europe.
With reference to the statement, FAI hasn’t been used to its fullest capacity for a long time, Ford has no fresh product concepts for this production facility, and it is planned that output of the currently manufactured 6F35 gearbox will be diminished. That’s the 2-nd time when Ford takes measures to get rid of the French plant. Ten years ago, Ford sold FAI to a third party – only to repurchase it 2 years later when that company went bankrupt. It is currently reported that Ford is already considering new owners for this manufacturing area.
Automatic transmission
6F35
In this case, one of the main concerns for Ford is the future of FAI’s specialists. Complementary to money compensation, Ford will look into options for workforce transfers. Ford has entered into a confidentiality agreement with an unnamed third party so that in-depth negotiations can start and, according to Ford’s representative, the company has made a major step forward in this direction.
The European branch of Ford is closely cooperating with Geris, a real property expert, to solicit offers for the site. Currently, several dozens of potential buyers expressed an interest in the abovementioned site. Ford wants to ensure that a potential owner should have a reliable business plan. Any proposal should be relevant, viable and correspond to the interests of all involved parties. It is rumoured that gearbox vendor Punch Powerglide may be the purchaser, but Ford has not confirmed the information. Currently, Punch Powerglide does not supply any auto components to Ford.
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Powerglide
The American auto giant is not planning that the new owner of the FAI site will continue manufacturing. However, one of the company’s representatives didn’t exclude the possibility that the potential purchaser’s business ideas may include production of particular Ford products for non-Ford parties. When it comes to the site’s workers, FAI has developed a social security program embracing measures on transfer to another job and early pension plan. Ford made it clear that the company will not resort to involuntary redundancies until the fall of 2019 and that current FAI employees will get their current level of wages till the end of the year. Ford is determined to put the FAI manufacturing area to good use and to provide suitable conditions for FAI workers.
