Ford to close Wales engine plant in latest blow to UK
car sector
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[June 06, 2019]
By Costas Pitas
LONDON (Reuters) - Ford said it would close
its plant in Bridgend, south Wales, next year because of falling demand
for some if its engines, putting 1,700 jobs at risk in a further blow to
Britain's once booming car industry.
Ford is making cuts in several markets to turn around loss-making
operations and has also repeatedly warned the British government that it
needs free trade to be maintained with the European Union after Brexit.
Production of Ford's 1.5-liter petrol engine will end in February,
whilst a contract to supply Jaguar Land Rover (JLR) finishes in
September 2020, the U.S. automaker said on Thursday.
"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," said Ford Europe
President Stuart Rowley.
The Bridgend plant built around 20 percent of Britain's 2.7 million
automotive engines last year.
Ford operates two factories in Britain making engines, which are
exported for fitting in vehicles in Germany, Turkey, the United States
and elsewhere. They could face delays and extra costs if Britain leaves
the European Union without securing a deal with the EU.
Britain's biggest trade union vowed to fight the move.
"We will resist this closure with all our might, and call upon the
governments at the Welsh Assembly and Westminster to join us to save
this plant," said Len McCluskey, head of the Unite union.
Britain's once thriving car sector, rebuilt since the 1980s mainly by
foreign carmakers, has been suffered slumps in sales, output and
investment over the past two years.
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The Ford logo is seen at the North American International Auto Show
in Detroit, Michigan, U.S., January 15, 2019. REUTERS/Brendan
McDermid
Ford said in January a turnaround of its European operations would involve
cutting thousands of jobs, possible plant closures and discontinuing loss-making
vehicle lines.
Workers have long pushed for Bridgend to produce hybrid technology and electric
vehicle components alongside a new third-party manufacturer to fill any surplus
space but such investment has not been forthcoming.
"Significant efforts to identify new opportunities have not been successful,"
said Ford.
The announcement is the latest blow to the sector this year after JLR announced
around 4,500 job cuts mainly in Britain, and Honda said up to 3,500 role would
go when it closes its British plant in 2021, in the biggest blow to the sector
so far.
A series of investment decisions are also pending, including whether Peugeot
parent PSA will keep its Ellesmere Port plant open and if JLR will make electric
cars in Britain.
(Reporting by Costas Pitas; editing by Guy Faulconbridge/Keith Weir)
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