Leaked memo reveals Ford told ministers it would keep Transit plant (From Daily Echo)
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Leaked memo reveals Ford told ministers it would keep Transit plant
10:50am Sunday 11th November 2012 in News
Lord Mandelson
FORD was telling ministers it would preserve its Southampton base back in 2008, documents obtained by the Daily Echo show.
The motor giant said bringing the new-generation Transit van to the plant would turn it around and stop it making a loss.
The Daily Echo has obtained a copy of a memo from the conversation, between former Business Secretary Peter Mandelson and John Fleming, who was the company’s European head.
It can be revealed as 30,000 prepare to protest on the streets of Genk in Belgium today against Ford cuts across Europe.
It also reveals the minister was urging Ford to maintain its presence on the south coast if itwas to receive help from taxpayers.
Contact between the company and ministers has been under close scrutiny since the bombshell closure of the Sway-thling plant and the loss of 500 jobs.
And the Daily Echo has revealed the extent of taxpayer-funded support for the company.
A £9.3 million award was made through the Regional Growth Fund just days before the closure, with ministers admitting this week they had not asked for any assurances about Southampton before handing over the cash.
And an £80 million European Investment Bank loan – sanctioned by Chancellor George Osborne – went towards the company’s Turkish operation.
Hampshire MPs have accused Ford of “flying in the face” of commitments about Swaythling that it made to them.
And the memo of Lord Mandelson’s phone call with Mr Fleming, at the time of widespread job losses at the plant in November 2008, reveals ministers were given the same assurances.
It says Mr Fleming was “seeking advice on what to do with the plant”, as he did not want to lose Ford’s last vehicle manufacturing in the UK.
“Fleming thought the Transit could be manufactured at Southampton until 2011, then Ford could bring the new Transit to the plant.”
Between 36,000 and 40,000 units per year would be produced, it says.
The memo adds: “Transit was highly profitable and valuable to the company, so this would turn the plant around and stop it being loss-making.”
The memo also refers to the possibility of taxpayer-funded loans, adding: “[The Secretary of State] said he wanted Ford to continue as a lynchpin and to maintain its base in Southampton. He wanted investment and production in the UK to continue, and would try to do whatever possible to ensure that they had a future in this country.”
John Denham, Labour MP for Southampton Itchen, said: “I have made the point all along that when we were trying to rescue the motor industry, we expected something in return.
“I think it’s pretty clear that Ford made a promise to keep Southampton open, and that the Government, in return, encouraged them to apply to European Investment Bank funding. Ford have taken advantage of that funding, and they’ve now walked away from the deal.”
- 30,000 prepare for Ford protest
- For all the latest news and background on the Ford closure click here
Comments(16)
Ginger_cyclist
says...
11:26am Sun 11 Nov 12
Facewagon
says...
11:37am Sun 11 Nov 12
Ginger_cyclist wrote:As opposed to our wonderfully civic-minded companies?
Typical american company, all take take take, when it comes to giving they run away.
__KTF__
says...
12:12pm Sun 11 Nov 12
Dragging up a letter from 2008 is meaningless.
andysaints007
says...
12:12pm Sun 11 Nov 12
ohec
says...
12:27pm Sun 11 Nov 12
peenut81
says...
12:33pm Sun 11 Nov 12
Ginger, it may disapoint you to know but it is not just American companies, its all companies and if they don't behave like this they are a badly run company unable to respond to the necessities of Capitalism.
This is why capitalism has no benefit to the masses, in the long run it encourages cartels, fraud and monopoly.
andysaints007
says...
12:54pm Sun 11 Nov 12
peenut81 wrote:Well that statement of yours just shows how little you know about business!
^^^^ And in business and politics 4 years is a very short time to plan, prepare and implement a project. So decisions and conversations then should still have some relevance today.
Ginger, it may disapoint you to know but it is not just American companies, its all companies and if they don't behave like this they are a badly run company unable to respond to the necessities of Capitalism.
This is why capitalism has no benefit to the masses, in the long run it encourages cartels, fraud and monopoly.
southy
says...
1:20pm Sun 11 Nov 12
andysaints007 wrote:No he very close.
peenut81 wrote:Well that statement of yours just shows how little you know about business!
^^^^ And in business and politics 4 years is a very short time to plan, prepare and implement a project. So decisions and conversations then should still have some relevance today.
Ginger, it may disapoint you to know but it is not just American companies, its all companies and if they don't behave like this they are a badly run company unable to respond to the necessities of Capitalism.
This is why capitalism has no benefit to the masses, in the long run it encourages cartels, fraud and monopoly.
And what about the £50million Fords recieved 2 years ago from the Tax payers, and all the rest of the money Fords have recieved over the years from the tax payers
Pheeny
says...
3:15pm Sun 11 Nov 12
Skipper38
says...
3:31pm Sun 11 Nov 12
Ford is a successful company because it is decisive. And, Southampton apart, Ford and Ford dealerships will still employ many 10s of thousands of people in the UK.
Torchie1
says...
4:25pm Sun 11 Nov 12
peenut81 wrote:In your little world a major car manufacturer is still selling the same volume of vehicles in 2012 as they did in 2008? If the answer is yes then why wasn't the Swaythling plant running around the clock to keep up with the demand and if it's No, you should be able to understand why a plant already on minimal capacity can no longer be kept running. A business can only run that way for a certain amount of time before hard decisions have to be made.
^^^^ And in business and politics 4 years is a very short time to plan, prepare and implement a project. So decisions and conversations then should still have some relevance today.
Ginger, it may disapoint you to know but it is not just American companies, its all companies and if they don't behave like this they are a badly run company unable to respond to the necessities of Capitalism.
This is why capitalism has no benefit to the masses, in the long run it encourages cartels, fraud and monopoly.
andysaints007
says...
4:42pm Sun 11 Nov 12
southy wrote:No he is not close !! And you can butt out of it southy you are a complete idiot and no one cares about your pathetic opinions!
andysaints007 wrote:No he very close.
peenut81 wrote:Well that statement of yours just shows how little you know about business!
^^^^ And in business and politics 4 years is a very short time to plan, prepare and implement a project. So decisions and conversations then should still have some relevance today.
Ginger, it may disapoint you to know but it is not just American companies, its all companies and if they don't behave like this they are a badly run company unable to respond to the necessities of Capitalism.
This is why capitalism has no benefit to the masses, in the long run it encourages cartels, fraud and monopoly.
And what about the £50million Fords recieved 2 years ago from the Tax payers, and all the rest of the money Fords have recieved over the years from the tax payers
andysaints007
says...
4:50pm Sun 11 Nov 12
Pheeny wrote:ahhh diddums
I'm from Genk in Belgium and Ford was also telling our politicians and Unions that our plant was save,and this up until 3/4 weeks before the announce the closure.
bobbyboy
says...
8:37pm Sun 11 Nov 12
murfmeister
says...
2:12pm Tue 13 Nov 12
My mum and dad met at the fords social club.
This is a very sad end to a place that has a special place in a lot of local peoples hearts over a lot of years and always will
G0Rf says...
11:22am Sun 11 Nov 12