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| Ford workers devastated as Bridgend factory closure confirmed - business live | |
| (32 minutes later) | |
| Ford workers at Bridgend have been sent home early after learning that their factory will close next year. | |
| Some spoke to media outside the plant. | |
| Press Association reports that Len Jones, 48, who has worked at the plant for seven-and-a-half years, said: | |
| “It’s devastating. Everyone’s got mortgages to pay and families to support. | |
| “I expected a little more time to get things sorted. | |
| “When we found out, everyone was just silent. They gave us letters and we just all went home. “It’s hard to take in really, even though we expected it. Now it’s official, it’s a bad thing, really.” | |
| Cars streaming out of Ford in Bridgend. Workers sent home early after getting the news that their jobs, after Sept 2020, will be gone. V bleak scene. pic.twitter.com/EYFlkDzsTW | |
| Another, named Stephen, explained how demand for Bridgend’s new 1.5-litre engine had dwindled: | |
| “The writing has been on the wall for a long time. We knew when the Sigma engine finished there was no replacement. We knew when the AJ engine finished there was no replacement. The predicted volumes for new Dragon engine were 250,000, then 125,000, then the last thing we had was for 70,000.” | |
| Supervisor Claire Shortland reported that the mood inside was “Dismal, but sort of expected really”. She’s already been through this situation once, having worked at Ford’s Southampton factory which closed in 2013. | |
| “I just don’t know what I’m going to do now. I sort of packed everything up and came here from Southampton when we stopped making Transit and now this.” | |
| The Society of Motor Manufacturers and Traders (SMMT), the industry body, has hinted that Brexit is a factor behind Bridgend’s closure. | The Society of Motor Manufacturers and Traders (SMMT), the industry body, has hinted that Brexit is a factor behind Bridgend’s closure. |
| SMMT chairman Mike Hawes points to the ‘economic uncertainty’ in the UK as one factor (and we all know the principle cause of that uncertainty). | SMMT chairman Mike Hawes points to the ‘economic uncertainty’ in the UK as one factor (and we all know the principle cause of that uncertainty). |
| Hawes says: | Hawes says: |
| Today’s announcement is another crushing blow for UK automotive manufacturing and, especially, the staff and their families in and around Bridgend. Ford’s challenges are not unique: economic uncertainty at home and abroad, technological change and global trade issues are stressing markets and forcing companies to review operations and make difficult decisions. | Today’s announcement is another crushing blow for UK automotive manufacturing and, especially, the staff and their families in and around Bridgend. Ford’s challenges are not unique: economic uncertainty at home and abroad, technological change and global trade issues are stressing markets and forcing companies to review operations and make difficult decisions. |
| Success in this fiercely competitive global industry, however, starts at home and we hope that all efforts will be made over the coming weeks to restore confidence, bolster demand and ensure there is long term competitiveness for this crucial sector.” | Success in this fiercely competitive global industry, however, starts at home and we hope that all efforts will be made over the coming weeks to restore confidence, bolster demand and ensure there is long term competitiveness for this crucial sector.” |
| Ford is holding a conference call with journalists now, to explain the closure of the Bridgend site. | Ford is holding a conference call with journalists now, to explain the closure of the Bridgend site. |
| Is Brexit a factor? European president Stewart Rowley insists the closure has nothing to do with Brexit, saying that Ford wouldn’t have taken a different decision if Brexit wasn’t happening. | Is Brexit a factor? European president Stewart Rowley insists the closure has nothing to do with Brexit, saying that Ford wouldn’t have taken a different decision if Brexit wasn’t happening. |
| But what if there’s a no-deal Brexit? Rowley says Ford will need to evaluate the business environment, and any tariff changes, if that happens. | But what if there’s a no-deal Brexit? Rowley says Ford will need to evaluate the business environment, and any tariff changes, if that happens. |
| Rowley explains that Ford will source engines from other sites, and isn’t planning to relocate the Welsh Dragon Engine facility elsewhere. | Rowley explains that Ford will source engines from other sites, and isn’t planning to relocate the Welsh Dragon Engine facility elsewhere. |
| Should the rest of Ford’s UK operations be worried? Rowley says the Dagenham engine plans is a core part of the business. | Should the rest of Ford’s UK operations be worried? Rowley says the Dagenham engine plans is a core part of the business. |
| Rowley also reveals that he’s spoken to UK business secretary Greg Clark about Bridgend. | Rowley also reveals that he’s spoken to UK business secretary Greg Clark about Bridgend. |
| The Federation of Small Business fears that the Bridgend closure will have a devastating impact on the region’s economy, as well as Ford workers and their families. | The Federation of Small Business fears that the Bridgend closure will have a devastating impact on the region’s economy, as well as Ford workers and their families. |
| Ben Cottam, head of external affairs at FSB Wales, explains: | Ben Cottam, head of external affairs at FSB Wales, explains: |
| “For 40 years, Ford has been part of the economic landscape of Wales and has a long-established, embedded and innovative supply chain of smaller businesses in Wales and beyond. UK and Welsh Governments now need to move quickly and, as a priority, work with individual businesses and business organisations to gauge the potential impact and determine what support will be needed to help shore up the activity of these businesses and, if necessary, help them diversify or seek new customers. | “For 40 years, Ford has been part of the economic landscape of Wales and has a long-established, embedded and innovative supply chain of smaller businesses in Wales and beyond. UK and Welsh Governments now need to move quickly and, as a priority, work with individual businesses and business organisations to gauge the potential impact and determine what support will be needed to help shore up the activity of these businesses and, if necessary, help them diversify or seek new customers. |
| “The dynamism of the plant’s employees and the supply chain are a huge asset to Wales which must not be lost. Now is a time for decisive leadership and we want to see real and demonstrable partnership and shared determination between Welsh and UK Governments to ensure that asset is not lost. FSB stands ready to lend its support to that effort. | “The dynamism of the plant’s employees and the supply chain are a huge asset to Wales which must not be lost. Now is a time for decisive leadership and we want to see real and demonstrable partnership and shared determination between Welsh and UK Governments to ensure that asset is not lost. FSB stands ready to lend its support to that effort. |
| Ford says it will offer a “comprehensive plan” to support workers losing their job at its Bridgend engine factory. | Ford says it will offer a “comprehensive plan” to support workers losing their job at its Bridgend engine factory. |
| The car marker says: | The car marker says: |
| This includes helping employees with redeployment opportunities to other Ford sites in the U.K. and assisting with domestic relocation where possible, or supporting them to find new employers or pursue new opportunities, such as creating their own businesses or training for new careers. | This includes helping employees with redeployment opportunities to other Ford sites in the U.K. and assisting with domestic relocation where possible, or supporting them to find new employers or pursue new opportunities, such as creating their own businesses or training for new careers. |
| However, the reality is that Ford is one of the biggest employers in the region, so it’s going to be very tough for anyone facing redundancy in the next few months. | However, the reality is that Ford is one of the biggest employers in the region, so it’s going to be very tough for anyone facing redundancy in the next few months. |
| Ford don’t mention Brexit in the statement announcing Bridgend’s closure. | Ford don’t mention Brexit in the statement announcing Bridgend’s closure. |
| Instead, they single out the loss of the contract to supply JLR with engines, and the failure to find more buyers for its new 1.5 litre offering. | Instead, they single out the loss of the contract to supply JLR with engines, and the failure to find more buyers for its new 1.5 litre offering. |
| Ford says: | Ford says: |
| Factors behind the proposed closure of Bridgend include significant underutilisation of the plant, driven by the impending end of engine production for Jaguar Land Rover, the cessation of the previous generation Ford GTDi 1.5-litre engine, and reduced global demand for the new generation Ford GTDi and Pfi 1.5-litre engine. | Factors behind the proposed closure of Bridgend include significant underutilisation of the plant, driven by the impending end of engine production for Jaguar Land Rover, the cessation of the previous generation Ford GTDi 1.5-litre engine, and reduced global demand for the new generation Ford GTDi and Pfi 1.5-litre engine. |
| At expected volumes, the plant also faces a cost disadvantage compared with other Ford facilities building the same engine. Significant efforts to identify new opportunities have not been successful. | At expected volumes, the plant also faces a cost disadvantage compared with other Ford facilities building the same engine. Significant efforts to identify new opportunities have not been successful. |
| Now, you could speculate that Brexit uncertainty deterred automobile makers from committing to buying engines from Bridgend (for fear that they were caught up in no-deal delays at the ports). But Ford haven’t stated that. | Now, you could speculate that Brexit uncertainty deterred automobile makers from committing to buying engines from Bridgend (for fear that they were caught up in no-deal delays at the ports). But Ford haven’t stated that. |
| Ford’s president of Europe, Stuart Rowley, has insisted that the company is still committed to the UK - despite deciding to shut Bridgend. | Ford’s president of Europe, Stuart Rowley, has insisted that the company is still committed to the UK - despite deciding to shut Bridgend. |
| Rowley says: | Rowley says: |
| “Creating a strong and sustainable Ford business in Europe requires us to make some difficult decisions, including the need to scale our global engine manufacturing footprint to best serve our future vehicle portfolio. | “Creating a strong and sustainable Ford business in Europe requires us to make some difficult decisions, including the need to scale our global engine manufacturing footprint to best serve our future vehicle portfolio. |
| “We are committed to the U.K.; however, changing customer demand and cost disadvantages, plus an absence of additional engine models for Bridgend going forward make the plant economically unsustainable in the years ahead.” | “We are committed to the U.K.; however, changing customer demand and cost disadvantages, plus an absence of additional engine models for Bridgend going forward make the plant economically unsustainable in the years ahead.” |
| Rowley is pledging to help staff who lose their job at Bridgend. | Rowley is pledging to help staff who lose their job at Bridgend. |
| “As a major employer in the U.K. for more than a century, we know that closing Bridgend would be difficult for many of our employees. | “As a major employer in the U.K. for more than a century, we know that closing Bridgend would be difficult for many of our employees. |
| We recognise the effects it would have on their families and the communities where they live and, as a responsible employer, we are proposing a plan that would help to ease the impact.” | We recognise the effects it would have on their families and the communities where they live and, as a responsible employer, we are proposing a plan that would help to ease the impact.” |
| Ford says it plans to shut Bridgend as part of a ‘business redesign’ to create a more efficient Europe-wide operation. | Ford says it plans to shut Bridgend as part of a ‘business redesign’ to create a more efficient Europe-wide operation. |
| It plans to stop making its “new-generation” 1.5-litre engine in February 2020 (I think this is the new Ecoboost engine used in the Fiesta ST and Focus). | It plans to stop making its “new-generation” 1.5-litre engine in February 2020 (I think this is the new Ecoboost engine used in the Fiesta ST and Focus). |
| Ford will then continue to manufacture engines for Jaguar Land Rover until its contract ends in September 2020, at which point production will end. | Ford will then continue to manufacture engines for Jaguar Land Rover until its contract ends in September 2020, at which point production will end. |
| Here are the key points from its announcement: | Here are the key points from its announcement: |
| Consultation starts concerning the proposed end of engine production and closure of Bridgend Engine Plant in South Wales by late 2020. | Consultation starts concerning the proposed end of engine production and closure of Bridgend Engine Plant in South Wales by late 2020. |
| Proposal supports Ford’s redesign strategy to create a more efficient and focused business in Europe, with significant progress already being made. | Proposal supports Ford’s redesign strategy to create a more efficient and focused business in Europe, with significant progress already being made. |
| Comprehensive plan includes an enhanced employee separation programme, plus measures to help employees find new jobs or other career opportunities. | Comprehensive plan includes an enhanced employee separation programme, plus measures to help employees find new jobs or other career opportunities. |
| Ford will remain a significant employer in the U.K.; engine production maintained at Dagenham; Dunton Technical Centre home to Ford’s European sales-leading commercial vehicle business | Ford will remain a significant employer in the U.K.; engine production maintained at Dagenham; Dunton Technical Centre home to Ford’s European sales-leading commercial vehicle business |
| NEWSFLASH: Ford has confirmed that it plans to close the Bridgend engine plant by late 2020, as feared. | NEWSFLASH: Ford has confirmed that it plans to close the Bridgend engine plant by late 2020, as feared. |
| More to follow.... | More to follow.... |
| Renault may not have given up on the other auto news of the day - the collapse of its proposed merger with Fiat-Chrysler (FCA). | Renault may not have given up on the other auto news of the day - the collapse of its proposed merger with Fiat-Chrysler (FCA). |
| The French carmaker has just issued a statement, which notably speaks in the present tense about the deal (even though Fiat walked away briskly overnight). | The French carmaker has just issued a statement, which notably speaks in the present tense about the deal (even though Fiat walked away briskly overnight). |
| It also says that its Japanese partner Nissan was “constructive’, even though French finance minister Bruno Le Maire appeared to blame Nissan for not offering enough support earlier today. | It also says that its Japanese partner Nissan was “constructive’, even though French finance minister Bruno Le Maire appeared to blame Nissan for not offering enough support earlier today. |
| Here’s the statement: | Here’s the statement: |
| We are gratified by the constructive approach of Nissan and wish to thank FCA for their efforts and the Renault’s Board of Directors for its continued confidence. | We are gratified by the constructive approach of Nissan and wish to thank FCA for their efforts and the Renault’s Board of Directors for its continued confidence. |
| We view the opportunity as timely, having compelling industrial logic and great financial merit, and which would result in a European based global auto powerhouse. | We view the opportunity as timely, having compelling industrial logic and great financial merit, and which would result in a European based global auto powerhouse. |
| Further, we believe it emphasises the attractivess of Renault and of the Alliance. | Further, we believe it emphasises the attractivess of Renault and of the Alliance. |
| Renault-Fiat Chrysler merger collapses | Renault-Fiat Chrysler merger collapses |
| Over in parliament, MPs have clashed over the Bridgend closure - and the extend to which Brexit is to blame. | Over in parliament, MPs have clashed over the Bridgend closure - and the extend to which Brexit is to blame. |
| PA has the details: | PA has the details: |
| Trade minister Graham Stuart said the automotive industry is in “massive global flux” and trying to link every decision to Brexit is to lead people astray”. | Trade minister Graham Stuart said the automotive industry is in “massive global flux” and trying to link every decision to Brexit is to lead people astray”. |
| He was answering a question in the Commons from Labour’s Geraint Davies (Swansea West), whose father worked at the Welsh Office and had convinced the car firm to move to Bridgend. | He was answering a question in the Commons from Labour’s Geraint Davies (Swansea West), whose father worked at the Welsh Office and had convinced the car firm to move to Bridgend. |
| The MP said the workers in the area, which voted for Brexit, “did not vote to lose their jobs” and argued they “deserve a final say on the final deal and to stay in the EU and not lose their jobs”. | The MP said the workers in the area, which voted for Brexit, “did not vote to lose their jobs” and argued they “deserve a final say on the final deal and to stay in the EU and not lose their jobs”. |
| But Mr Stuart hit out at this “false argument for a second referendum”, saying that the people of South Wales wanted to leave and not hear “weaselly words from the party opposite”. | But Mr Stuart hit out at this “false argument for a second referendum”, saying that the people of South Wales wanted to leave and not hear “weaselly words from the party opposite”. |
| Geriant Davies has tweeted a clip of his question too: | Geriant Davies has tweeted a clip of his question too: |
| My father David Davies at the Welsh Office got Ford to create its Bridgend plant in the 70s but it's now closing due to Brexit. People who voted to Leave did not vote to leave their jobs. They have the right to have the final say in a #PublicVote pic.twitter.com/JYiIv0HYPX | My father David Davies at the Welsh Office got Ford to create its Bridgend plant in the 70s but it's now closing due to Brexit. People who voted to Leave did not vote to leave their jobs. They have the right to have the final say in a #PublicVote pic.twitter.com/JYiIv0HYPX |