Ford has forecast that its Europe losses will top US$1 billion (NZ$1.2b) this year, as the region braces for its biggest annual drop in car sales in 19 years. GM has lost nearly US$17 billion in the region since 1999.
Under the Belgian plan, production of the next-generation Mondeo mid-sized car and S-Max and Galaxy minivans would move from Genk to Ford's factory in Valencia.
"The proposed restructuring of our European manufacturing operations is a fundamental part of our plan to strengthen Ford's business in Europe and to return to profitable growth," said Ford of Europe CEO Stephen Odell.
Ford's sales in the European Union have fallen 12.6 per cent in the first nine months in a total market down 7.6 per cent, says industry association ACEA.
In July, Ford said action was needed to "decrease our production to match real demand."
Ford has said it used only 68 per cent of Genk's manufacturing capacity last year, below the 80 per cent threshold usually considered profitable.
The plant is vulnerable because the models it produces are near the end of their life cycles.
Ford reported a second-quarter pretax loss of US$404 million in Europe, compared with a profit of US$176 million a year earlier.
Shutting the Genk factory could save the company about US$500 million, said UBS research analyst Colin Langan.
