Hundreds of Essex jobs lost in Ford axe (From Echo)
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Hundreds of Essex jobs lost in Ford axe
12:09pm Thursday 25th October 2012 in News
Essex jobs lost in Ford axe
Ford is to close its Transit van factory and another UK site with the loss of up to 1,500 jobs, sources said.
The grim news was given to union officials at a meeting with the company and was described as "devastating" by one official.
The Transit van plant in Southampton will close next summer, with the loss of more than 500 jobs, while a site in Dagenham will shut at the same time.
Union officials said up to 1,500 jobs will be affected by the news, although some new posts will be created at the Dagenham engine plant which will build Ford's new Panther engine.
It is understood that Ford will offer a generous redundancy package and redeployment to workers who want to stay with the company.
Justin Bowden, national officer of the GMB union, said: "This is devastating news for the workers in Southampton and Dagenham and is very bad news for UK manufacturing. Ford's track record in Britain is one of broken promises and factory closures. There will be a feeling of shock and anger, and Ford's commitment on investment will cut little ice."
Ford employs around 11,400 workers in the UK at plants including Dagenham, Halewood on Merseyside and Bridgend in South Wales. Ford on Wednesday unveiled plans to close its factory in Genk, Belgium, with the loss of 4,300 jobs and said more details of its "transformation" plan for Europe will be given later.
Stephen Odell, chairman and chief executive of Ford of Europe, said: "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."
Mr Odell met union officials to give them the news.
Ford will not make an official announcement on its plans until later. The news emerged two hours after official figures showed that the UK's recession had ended.
Ford axes hundreds of Essex jobs
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Comments (9)
12:32pm Thu 25 Oct 12
Shoebury_Cyclist says...
This is because UK workers are cheaper and easier to make redundant, and closing plants carries no penalty. Workers and plants elsewhere in Europe have the protection of EU employment law, which the UK government has repeatedly opted out of.
12:41pm Thu 25 Oct 12
Eric Whim says...
Have they built another R&D site in former Eastern Bloc Europe or in Asia yet?
3:42pm Thu 25 Oct 12
notinwestcliffanymore says...
6:38pm Thu 25 Oct 12
VPAG member says...
10:31pm Thu 25 Oct 12
perini says...
9:05am Fri 26 Oct 12
PJR-121 says...
Ford have been hit hard by the economic situation, with car buyers looking toward cheaper asian models. The company has been restructuring for some time, but is still committed to its remaining plants in the UK.
Dunton is Ford's premier R&D site in Europe, and with the 'global car' platform that the company is working on, has become a centre for the entire company in recent years. Ford's new Econetic engines were developed there, and the new Panther engine is also to be tested, as well as development for the new Fiesta and Mondeo, which are due for release in 2013 and 2014.
However, sales of Transits has dropped over the last few years, mainly due to a lack of need, as companies and fleets make do with older vehicles. This has led Ford to take this action, moving production to mainland Europe.
This does have implications however, for several other businesses in the UK. Southampton was the main centre for Chassis cabs, which means those UK motorhome manufacturers who use them will need to pay more for importing them, or switch onto the Fiat scheme, wherebuy they pay the Italian company a percentage of each vehicle sale, rather than up front.
Unfortunately the other option is that Ford goes bust, and if that happens, Dagenham, Bridgend, Halewood and Dunton will close along with all the European plants and Warley. The company is in serious financial trouble in Europe and the US, and I wouldn't be surprised if more cuts are announced next year...
12:34pm Fri 26 Oct 12
notinwestcliffanymore says...
1:08pm Fri 26 Oct 12
PJR-121 says...
I do wonder how they can believe this is a model that will work when Honda and Nissan to name a few are committed to Britain though.
2:31pm Fri 26 Oct 12
notinwestcliffanymore says...