Ford proposes 4,000 layoffs in Spain

Automaker Ford says it has proposed temporary layoffs for 4,000 of its 6,200 workers at its Spanish assembly plant in Valencia because of sluggish European demand for new cars.

Ford Motor Co.'s Spanish division says it wants the workers to stay home for 39 days between January and October of next year.

Company spokesman Jose Perez said Wednesday that the division has started talks with unions to negotiate terms of the temporary layoffs.

The company says demand for cars in Spain and Europe is expected to remain weak in 2012 and that the Valencia plant needs the investment to produce new models. Ford in June announced an investment of (euro) 812 million ($1.1 billion) for the plant that it said would create dozens of new jobs.

Source: Economic Times