Ford closing Belgium plant early as Euro-losses mount

• Ford closing Euro plant early

Ford Motor says it's closing a car factory in Genk, Belgium, in 2014 and moving production to Spain, and General Motors says it will jointly develop some models with France's PSA/Peugeot-Citroen so both makers can save money vs. developing similar models separately.

The European new-car market has shrunk dramatically and car companies are losing billions of dollars. Ford says it expects to lose $1 billion in Europe this year, double an earlier forecast. GM has lost nearly $17 billion there since 1999, says a report in trade magazine Automotive News.

Ford previously said it would keep Genk open to build the next generation of sedans and utility vehicles it builds there. And GM had been vague about how it would partner with PSA. The planned joint development should save $2 billion a year, GM says.

Automakers can't simply shutter factories and lay off workers, as they did in the U.S. during the recession and auto bankruptcy reorganizations of 2009. European union contracts and government resistance prevent such wholesale closings immediately, delaying any massive restructuring in Europe until 2014 when contracts end.