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Ford cuts 950 Russian jobs on weak demand

The Russian auto market, in decline for the past year and further hit by the declining value of the ruble and recent sanctions over its annexation of Crimea, has forced Ford to cut jobs and shifts at two of its joint venture plants there. Around 700 of the 2,700 total workers who build the Russian-market Focus and Mondeo will be cut at the plant in Vsevolozhsk, near St. Petersburg as it drops to a single production shift. A second plant about 700 miles away in Yelabuga, in the Tartarstan region, will lose 250 workers. That plant builds seven vehicles, including the Explorer, Kuga and Edge.
The Moscow Times says Ford has been especially hit by the market decline, the overall market losing 5.5 percent in 2013 compared to the year before, but Ford sales dropping 18 percent in 2013 year-on-year. This year isn't going any better, with The Blue Oval posting a 21-percent decline through the first two months of 2014. That's why, though the Yelabuga plant builds the CUVs that customers are moving into, even it is facing cuts.
The job cuts in Vsevolozhsk come on top four-week plant shutdown planned so that the paint and body shops can go to one shift. In a statement, the company said, "Ford Sollers remains absolutely committed to the Russian market and is confident it has the right product plan, people and assets to deliver long-term profitable growth."

NHTSA probes 2014 Ford Edge Sport 22-inch alloy wheels

The National Highway Traffic Safety Administration is opening a preliminary evaluation into the 2014 Ford Edge Sport for the possibility its 22-inch wheels could break while on the road. This affects an estimated 20,000 examples of the crossover, according to NHTSA. The case that instigated this evaluation was submitted to NHTSA in November 2014. The driver reported that the front, right corner of the vehicle suddenly dipped, and the Edge went into a field. No one was harmed, but upon investigation, the wheel had broken into two pieces, according to The Detroit News. When this happened, this crossover had been driven an estimated 8,500 miles. NHTSA's preliminary evaluations are meant "to assess the scope, frequency, and safety-related consequences of the alleged defect in the subject vehicles." If a problem is discovered during the investigation, this process can lead to a recall. Ford spokesperson Kelli Felker told Autoblog, "We will cooperate with NHTSA on this investigation, as we always do." INVESTIGATION Subject : Wheel Separation Date Investigation Opened: MAY 20, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15020 Component(s): WHEELS All Products Associated with this Investigation Vehicle Make Model Model Year(s) FORD EDGE 2014 Details Manufacturer: Ford Motor Company SUMMARY: On November 29, 2014, ODI received a complaint (ODI No. 10661278) reporting the sudden failure of an original equipment 22-inch alloy wheel rim that failed on a model year 2014 Ford Edge. The right-front corner of the vehicle suddenly dropped while driving, causing the vehicle to drive off the road and into a field. The right-front wheel rim was found to have broken into two pieces. The owner said that there was no prior warning or wheel related problems with the vehicle. The vehicle had been driven approximately 8,500 miles at the time of the incident. A preliminary evaluation has been opened to assess the scope, frequency and safety-related consequences of the alleged defect in the subject vehicles. Related Video:

Ford paying $750 million just to close plant in Belgium

According to a report from Reuters, Ford is shelling out $750 million in a severance deal that will see the automaker close its facility in Genk, Belgium. The automaker reached this deal with the 4,000 hourly workers employed at the plant last week, which means the company will pay out an average of $187,500 per worker.
Ford is still negotiating with the 300 salaried workers at the factory, which currently produces the Mondeo sedan. All told, Ford expects to lose around $2 billion in Europe thanks in no small part to the region's ongoing economic downturn, and two more plants are scheduled to be shut down in Europe this year. The company will log its $750 million payout under "special items" for this quarter.
As you may recall, Ford took a similar path in the US back in 2009 when the domestic market took a spill. Back then, the company shelled out around $50,000 per employee with at least one year of experience, plus either $25,000 toward a new car or an extra cash payment of $20,000. It would seem the cost of closing plants in Belgium is a much harder pill to swallow than in the States...