Daily Investment Market News from London
Friday 21st of November 2008
September 15, 2008

Van production to be slashed at Ford Motor Co


by Kay Murchie

Van production to be slashed at Ford Motor Co

Ford Motor Company has announced plans to slash production of the Transit van. The company currently produces 75,000 transit vans a year but this will be more than halved to 35,000 a year.

There are fears that the plans could result in the closure of its plant in Southampton which will undoubtedly lead to job losses. The plant currently has a workforce of over 1,000.

The company said it plans to continue making the Transit van at the Swaythling plant until 2011. After that time, it will be replaced by a new model to be made in Turkey.

The Southampton plant will make only chassis cab Transits, the front part of the van onto which customers will put their own rear sections.

The announcement follows the termination of 124 short-term contracts at the plant in August.

Discussions are taking place with Unite and a spokesperson for the union said unless Southampton and the future of other Ford UK plants are secured, there will be no recommendation for settlement in the forthcoming pay negotiations.

Brian Bennett of Ford said the company has proposed a multi-million pound investment plan for Southampton as primary source for chassis cab variants of the next model Transit.

This financially viable Ford Transit investment plan and the associated impact on employment levels will continue to be reviewed, concluded Mr Bennett.

Story link: Van production to be slashed at Ford Motor Co



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