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Trail of woe in Midlands Trail of woe in Midlands
(20 minutes later)
By Bob Walker Today programme The UK's car industry is holding its collective breath as the government continues to ponder whether to hand over emergency financial support. Production has slumped and many companies have laid off workers or cut back on shifts.By Bob Walker Today programme The UK's car industry is holding its collective breath as the government continues to ponder whether to hand over emergency financial support. Production has slumped and many companies have laid off workers or cut back on shifts.
Land Rover workers will be taking an extended Christmas breakIt's unusually quiet outside the Land Rover plant in Solihull. And it's going to get a lot quieter over the next few weeks.Land Rover workers will be taking an extended Christmas breakIt's unusually quiet outside the Land Rover plant in Solihull. And it's going to get a lot quieter over the next few weeks.
Last month Land Rover sales plunged by almost two thirds. Night shifts have been cut, 850 agency workers have gone and they're looking for 600 voluntary redundancies across the Jaguar Land Rover Group.Last month Land Rover sales plunged by almost two thirds. Night shifts have been cut, 850 agency workers have gone and they're looking for 600 voluntary redundancies across the Jaguar Land Rover Group.
Jaguar workers have begun an extended three week Christmas and New Year break and Land Rover will have a similar shutdown from next week.Jaguar workers have begun an extended three week Christmas and New Year break and Land Rover will have a similar shutdown from next week.
The swift drop in demand for new vehicles has prompted JLR's owners - India-based Tata - to turn to the government for help. It's thought the company wants loans or loan guarantees to help it through these difficult times.The swift drop in demand for new vehicles has prompted JLR's owners - India-based Tata - to turn to the government for help. It's thought the company wants loans or loan guarantees to help it through these difficult times.
It's not just the car giants themselves who are suffering.It's not just the car giants themselves who are suffering.
Production chainProduction chain
They don't want to build vehicles because they're just going into fields to be stored Gurgit Atwal Government confirms Jaguar talks Over in Birmingham the next link in the JLR production chain is being put under pressure.They don't want to build vehicles because they're just going into fields to be stored Gurgit Atwal Government confirms Jaguar talks Over in Birmingham the next link in the JLR production chain is being put under pressure.
Dana Axles UK Ltd is responsible for the modern-looking axles that go into Jaguar and Land Rover vehicles. It currently employs around 400 people at its plant in Witton and has already been hit by the downturn.Dana Axles UK Ltd is responsible for the modern-looking axles that go into Jaguar and Land Rover vehicles. It currently employs around 400 people at its plant in Witton and has already been hit by the downturn.
Sales manager Gurgit Atwal says orders in the second half of the year are 40% on expected levels.Sales manager Gurgit Atwal says orders in the second half of the year are 40% on expected levels.
He said: "Almost every week we've come in since the summer shutdown and we've had new schedules in from all of our customers - not just Jaguar Land Rover - that are reduced volumes on a weekly basis because obviously they don't want to build vehicles because they're just going into fields to be stored."He said: "Almost every week we've come in since the summer shutdown and we've had new schedules in from all of our customers - not just Jaguar Land Rover - that are reduced volumes on a weekly basis because obviously they don't want to build vehicles because they're just going into fields to be stored."
As a result Dana has shut down production from 12 December to 12 January and has had to lose around 100 employees.As a result Dana has shut down production from 12 December to 12 January and has had to lose around 100 employees.
Orders in the second half of the year are down at Dana AxlesAcross the city in Oldbury, Stephens Gaskets is also feeling the pinch. They make a range of motor components including metal shims that go into Dana's axles.Orders in the second half of the year are down at Dana AxlesAcross the city in Oldbury, Stephens Gaskets is also feeling the pinch. They make a range of motor components including metal shims that go into Dana's axles.
Although the company has sought to diversify, its automotive-related orders have nosedived by 90%. Three of its 15 strong workforce have been made redundant.Although the company has sought to diversify, its automotive-related orders have nosedived by 90%. Three of its 15 strong workforce have been made redundant.
Managing director Rex Bainton says they're hoping to avoid further job cuts, but the position remains fragile.Managing director Rex Bainton says they're hoping to avoid further job cuts, but the position remains fragile.
He said: "We're dredging through everything that we spend to see what savings we can make."He said: "We're dredging through everything that we spend to see what savings we can make."
When Rover collapsed there were fears across the West Midlands that many suppliers would go out of business. In the event the fall out wasn't quite as dramatic as predicted but this time there are concerns that a similar situation at JLR would have a real and dramatic impact on the local economy.When Rover collapsed there were fears across the West Midlands that many suppliers would go out of business. In the event the fall out wasn't quite as dramatic as predicted but this time there are concerns that a similar situation at JLR would have a real and dramatic impact on the local economy.
"I think that because the Longbridge situation had been in a downturn for a long time, people had allowed for it to a large extent and had more time to think about how they were going to accommodate those losses," said Mr Bainton."I think that because the Longbridge situation had been in a downturn for a long time, people had allowed for it to a large extent and had more time to think about how they were going to accommodate those losses," said Mr Bainton.
"This situation now is so sudden that people won't have had time to consider other opportunities.""This situation now is so sudden that people won't have had time to consider other opportunities."
Following the chain down further we come to Anvil Steels, a few miles away in West Bromwich.Following the chain down further we come to Anvil Steels, a few miles away in West Bromwich.
Their plant is a real throwback to the days of Midlands metal bashing, with large oil-covered machinery rolling and cutting the steel, which is sent on to companies like Stephens Gaskets.Their plant is a real throwback to the days of Midlands metal bashing, with large oil-covered machinery rolling and cutting the steel, which is sent on to companies like Stephens Gaskets.
Pay cutsPay cuts
The fall in orders happened suddenly, Mike Brophy saysDirector Mike Brophy has 40 years experience in the metal industry in the Midlands and he said the situation was the worst he could remember.The fall in orders happened suddenly, Mike Brophy saysDirector Mike Brophy has 40 years experience in the metal industry in the Midlands and he said the situation was the worst he could remember.
There have been no recent orders from Stephens and there are problems with other customers.There have been no recent orders from Stephens and there are problems with other customers.
"It's as bad as we've known it for a long time," said Mr Brophy."It's as bad as we've known it for a long time," said Mr Brophy.
"We've had a really tremendous run, we were working overtime for the last eight years and it wasn't until mid to end of October when we seemed to hit a wall and all the orders from our customers seemed to dry up very, very quickly indeed.""We've had a really tremendous run, we were working overtime for the last eight years and it wasn't until mid to end of October when we seemed to hit a wall and all the orders from our customers seemed to dry up very, very quickly indeed."
Overtime has been ended and staff have taken a 20% pay cut.Overtime has been ended and staff have taken a 20% pay cut.
He's confident that the company will survive - they didn't over-extend themselves in the good times.He's confident that the company will survive - they didn't over-extend themselves in the good times.
"We are about 25% down at the moment; obviously we can't continue indefinitely like that, we will have to review the manning levels after Christmas.""We are about 25% down at the moment; obviously we can't continue indefinitely like that, we will have to review the manning levels after Christmas."
Things may look bleak but there is an unspoken belief that perhaps things may improve in the New Year.Things may look bleak but there is an unspoken belief that perhaps things may improve in the New Year.
Mr Brophy said: "There is this forlorn hope that things will be better after Christmas and we hope that as well - but it's not built on any facts...it's just a hope really. "Mr Brophy said: "There is this forlorn hope that things will be better after Christmas and we hope that as well - but it's not built on any facts...it's just a hope really. "