Ford adjusting European production

COLOGNE, Germany, March 16 (UPI) -- Ford Motor Co. said Monday it is investing $260 million in its auto plant in Cologne, Germany, and adjusting its production elsewhere in Europe.

Juergen Ruttgers, minister president of North-Rhine Westfalia, said the U.S. automaker's investment in Cologne would help secure more than 700 jobs, Deutsche Welle reported.

Ruttgers said the Cologne subsidiary would now focus exclusively on environmentally friendly engines, the German broadcaster said.

Meanwhile, The Wall Street Journal reported Ford's European division is adjusting its overall production capacity to match shrinking demand.

"Cutting capacity, reducing costs and safeguarding our future product plans are essential actions for Ford of Europe to sustain a viable business for the future," John Fleming, Ford's European chief executive, said in a statement.

"Ford of Europe must return to sustainable profitability as soon as possible. We will do whatever it takes to ensure the continuing viability of our business, and further actions can be expected."

He noted demand is unlikely to improve significantly in the European market "for some considerable time."

The actions affect Ford operations in Germany, Spain and Romania as it seeks $4.26 billion in aid from Germany and other countries to avoid bankruptcy, the Journal reported.