The Ford Motor Company, which has said its European operation could suffer losses of $1bn this year, has started consultations on closing its factory in Genk.

The closure would involve cutting 4,300 jobs.

The factory makes the Mondeo and S-Max models, production of which would be moved to Spain.

Ford is also expected to announce the closure of its factory in Southampton, England, which employs 500 people and makes the Transit Van – the only vehicle that Ford makes in the UK.

Ford is trying to control its losses and intends to review “all areas of the business to address the near-term challenges while ensuring we are building a strong business for the future.”

Stephen Odell, chairman and chief executive of Ford Europe, said of the Genk closure: “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.”

Odell added that if the restructuring was confirmed, Ford will support those affected.