Ford has announced it will shut down its factory in Genk, Belgium within two years, moving the production of three models produced there to Spain.
More than 4,000 workers will lose their jobs when the factory closes and many are already worried about finding new jobs in difficult economic times.
Car sales across Europe have slumped since the economic crisis began, and Ford expects to lose more than $1bn in the region this year.
Ford said the decision to close the factory could save the company about $500m.
The US company is not the only car maker who will need to trim production, manufacturing across Europe has been continually contracting for more than a year.
On Friday, the French government offered Peugeot a $9bn lifeline and to keep the car industry moving more deals between governments and major manufacturers could follow.
Al Jazeera's Charlie Angela reports from Genk.