Ford in Europe plans cost-cutting transformation
CAR GIANT Ford has announced plans for a shakeup of its European operations aimed at improving profits and reducing costs.
Ford in Bridgend has around 1,550 employees and the plant is one of the biggest employers in Wales, but no details were revealed about job losses in the UK.
The company did say it was starting consultations with unions to implement a “comprehensive transformation strategy”.
New all-electric vehicles will be offered for all Ford models, and the company said it would be speeding up plans to cut structural costs.
The announcement came just hours before Jaguar Land Rover confirms details of job losses in the UK.
“We are taking decisive action to transform the Ford business in Europe,” said Steven Armstrong, Ford’s group vice-president and president, Europe, Middle East and Africa.
“We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering vehicles to our customers.”
Ford said it was starting formal consultation with its works council and trade unions, adding that it was committed to working with its key stakeholders over the new strategy.
Unite union national officer Des Quinn said: “Ford’s workforce in the UK is world-class in making and developing engines and gearboxes that are shipped all over the globe.
“Unite is positively engaging with Ford over its plans as we seek to safeguard jobs and look after the interests of all the company’s employees in the UK.
“We expect the immediate impact on Ford’s UK operations to be limited.”
In November staff at the Bridgend plant said they had been told there could be voluntary redundancies in the new year.
The plant is currently producing 1,860 of the Ford petrol Sigma engines daily, but a document sent to employees suggested managers only expect to be making 600 engines a day by July 2019.
The document also showed managers were planning to start production on the new Dragon engine in March 2019, however, there will only be one shift initially, with two shifts by the end of 2019.
The final decision on whether the EcoBoost 1.5-litre three-cylinder engines (the Dragon) would be made at the Ford plant has not yet been made, although it was expected to be this month.
As well as the Bridgend plant, the firm is considering a number of locations in Europe, including Portugal, for its new 4x4 vehicle. If it decides to locate production at Bridgend, it would be a huge boost for the plant.
Speaking towards the end of the year Ineos Automotive chief executive Dirk Heilmann said: “We are not taking [the decision] lightly because it is pivotal – for our business and for the local communities that would benefit from the new jobs we would be creating.”
Jaguar Land Rover announced yesterday is to cut 4,500 jobs under plans to make £2.5 billion of cost savings.
Most of the cuts are expected to be in the UK, with a voluntary programme being launched.
The company also announced further investment in electrification, with electric drive units to be built at its factory in Wolverhampton and a new battery assembly centre at Hams Hall in Birmingham.
JLR employs 44,000 workers in the UK at sites in Halewood on Merseyside and Solihull, Castle Bromwich and Wolverhampton.