Member Article

Ford announces 1,400 job losses

U.S car manufacturer Ford has announced that operations at its Southampton transit van factory will end, after a European restructuring plan was announced earlier in the week.

The long running plant will be closed, and 530 UK jobs could be at risk after over 100 years of production at the site.

An additional plant in Dagenham will also be shut, it emerged on Thursday, to bring the total job loss up to 1,400 in the UK, while reports say that union leaders have indicated this number could rise to 2,000.

4,300 jobs will also be lost at the company’s Genk factory in Belgium as a result of overproduction of cars and a suffering market in Europe.

Unions and management heads met on Thursday morning to discuss the future of the factory, and Ford confirmed the stamping plant in Dagenham would close with the Southampton factory by the end of 2014.

The announcement on Thursday brought the total job loss up to 5,700 people across Europe.

Commenting on the restructing plans, Alan Mulally, Ford president and Chief Executive said: “Using the same One Ford plan that led to strong profitability in North America, we will address the crisis in Europe with a laser focus on new products, a stronger brand and increased cost efficiency,”

“We recognize the impact our actions will have on many employees and their families in Europe, and we will work together with all stakeholders during this necessary transformation of our business.”

Stephen Odell, Chairman and Chief of Ford Europe said: “The European market holds potential for profitable growth if we accelerate product development and move decisively to address our costs and overcapacity.”

“Even in today’s environment, we are increasing the introduction of new products, leveraging our One Ford global strengths.”

Business Secretary Vince Cable said: “Today’s news will be very disappointing for the workers at Southampton and Dagenham who have been very aware of the challenges facing the auto sector throughout Europe. Our priority will be to help the workforce and we will be working with Ford to get them into new jobs as quickly as possible.

“Ford has today underlined its continued long term commitment to its core activities in the UK and its £1.5 billion programme of investment in advanced manufacturing, engineering and research and development until 2015.

“And the company has today announced that production of the new low carbon diesel engine will start in 2015/6 which is being designed and engineered at Dunton and built at Dagenham.

“This is good news and underlines Ford’s commitment for the long term. Ford has applied for money from round 3 of the Government’s Regional Growth Fund to enable this project to go ahead and we were pleased last Friday to announce support for this going forward.”

This was posted in Bdaily's Members' News section by Miranda Dobson .