12:57pm Thursday 10th July 2008
Below we print the memo issued to 1,243 Ford Southampton staff saying the company was "continuing to review possible alternative scenarios for the future of the plant".
The letter also revealed that the company had highlighted a number of economic and operating factors "which make it very difficult to achieve a level of investment in Southampton that would enable us to continue at current volume levels".
As you will be aware from the Transition Bulletin that was sent out last week, discussions are continuing regarding a new model Transit replacement when the current model production ceases in 2010. My commitment to you was to keep you informed as these discussions developed.
Today, senior European management from the company met here with national trade union officers and senior TU representatives from the plant. This meeting was a follow on from earlier meetings held in March and May this year where the company had committed to look at various investment opportunities for Southampton.
Additionally, this matter has been the subject of ongoing local discussions between the company and the trade union in the plant.
Although no final decision has been made, the company highlighted a number of economic and operating factors which make it very difficult to achieve a level of investment in Southampton that would enable us to continue at current volume levels.
Additionally, the new model has significant features and styling to ensure that it remains successful in an increasingly competitive market. This would require significant re-tooling and infrastructure costs that contribute to high investment figures.
On this basis, the company advised that it was continuing to review possible alternative scenarios for the future of the plant and advised that it expected to be able to provide an update by the end of August 2008.
The Trade Union expressed disappointment at the company's assessment and restated its commitment to securing the long term future of the Southampton plant.
A further meeting will be arranged for late August.
In the meantime, we will continue to work on developing our business case and will keep you informed of progress.
Martin Chapman Plant Manager
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