UK jobs to go as Ford moves work to Turkey
A question mark is hanging over hundreds of jobs at Ford’s Southampton facility, home of the iconic Ford Transit van, as the car company pushes ahead with plans to scale back production and transfer work to Turkey.
However, MPs and unions were told last week that the future of the plant was assured, despite earlier fears it could eventually close.
John Fleming, chief executive and chairman of Ford of Europe, has drawn up a new business plan for the plant which will see it manufacture the chassis for the next generation of Transit vans, rather than producing complete vehicles.
The new Transit starts production in 2011.
The number of vehicles made could be halved to 35,000 under the proposals, which will see more work done by Ford’s other Transit factory in Turkey.
The proposals will be presented to the firm’s Detroit headquarters next year. A spokesman for Ford said: “We want to maintain production at Southampton and have worked hard to produce a viable business case.”
MPs met Fleming on Friday to voice their concerns about the long-term viability of the plant, which employs 1,150 staff.
Chris Huhne, MP for Eastleigh, said he was “delighted” to have been assured that the plant’s future was secure and any staff reductions would be met through early retirement and voluntary redundancies.
Huhne said there was a slim chance the plant could continue to operate at its present capacity if Ford was able to make savings elsewhere in the UK.
The company will consider this strategy in the next few weeks.
Ford believes the new business case — which will require an investment of tens of millions of pounds from the Detroit carmaker — is Southampton’s best hope. When the new model comes in, the facility is
likely to operate only a day shift.
Carmakers have seen sales drop dramatically in the wake of the credit crunch.
Last week, UK industry leaders met business secretary Lord Mandelson to discuss Government support.
In the US, Detroit’s biggest carmakers have been seeking a multi-billion dollar bail-out from Congress as they seek to avoid bankruptcy.
Their first request was refused, but GM, Ford and Chrysler will make a last-ditch plea for cash next week with new business plans.
The board of GM is said to have discussed bankruptcy as an option.
This weekend GM is trying to tempt some of its debt holders into exchanging debt for equity as it tries to steer clear of bankruptcy.
