Ford cuts back Europe production as downturn bites

By John Bowker

LONDON, Sept 30 (Reuters) - Vehicle manufacturer Ford (F.N) is to cut production at its only British plant as well as other factories on mainland Europe as it battles against falling sales, the U.S. company said on Tuesday.

Confirming a company statement a group spokesman said the firm would be asking staff at its Ford transit van plant in Southampton to work a four day week until the end of the year, reducing full year production from 74,000 vehicles last year to below 70,000.

"An estimate for total 2008 production is now less than 70,000," he said, adding that there would be no job losses among full-time staff at present.

He said there would also be production cuts at plants across Europe, but was not able to say which ones. A spokesman for Ford in Germany could not be reached for comment.

Ford said the market for vehicles had softened since August as buyers put off big purchases during the worsening economic climate.

"Since August, this softening in the market has resulted in a reduction in the daily volumes of Ford Transits produced in the Southampton plant," the company said in a statement.

The Society of Motor Manufacturers and Traders (SMMT) said earlier this month that British new car sales fell 18.6 percent in August to just over 63,000 -- far worse than the year-to-date figure which was down just 3.8 percent.

(Reporting by John Bowker; Editing by Sharon Lindores)