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Ford to cut Transit production
12:16pm Tuesday 22nd July 2008
Comments (29)
FORD bosses are cutting production at their Southamp-ton plant, the Daily Echo can reveal.
Leaked company documents show that the number of vehicles made will be slashed by 3,900 in the last three months of the year.
Last night the motor giant confirmed that the number of Transits rolling off the Swaythling production line would fall in the fourth quarter of the year.
The plant currently has an output of around 80,000 units a year - approximately 20,000 a quarter.
The company would not be drawn on numbers and its impact on jobs.
But a spokesman said: "There will be some production cuts at Ford, Swaythling, but this is in line with the softening of the market and the falling of sales. We will be keeping employees and unions fully informed."
The Daily Echo has obtained a copy of the eight-page minutes of the Joint Works Committee for July.
They state: "Due to the falling sales market throughout Europe the company said that most plants were having their schedules reduced with the exception of Fiesta and Galaxy.
"Southampton schedule is reducing by 3,900 units in the last quarter.
"These are only first sight figures and the company are still assessing the data and will have further talks with the trade union on the impact on the plant and its employees."
It goes on to say the plant now employs 1,033 people plus 118 temporary workers and four agency staff.
The Daily Echo also understands that the number of vehicles being produced at the Kocaeli plant in Turkey will be cut by 10,000 Transit Connects and 5,000 Transits in the last quarter.
The new revelations have come to light after the Daily Echo exclusively published a leaked memo that revealed the future of the Swaythling plant was under review.
The memo by plant manager Martin Chapman stated the company had found "a number of economic and operating factors that make it very difficult to achieve a level of investment in Southampton that would enable us to continue at current volume levels".
Ford was, the minutes stated, "continuing to review possible alternative scenarios."
Further leaked documents showed that the Southampton plant may lose the contract for the new generation of Transits because high costs had put the plant more than £6m over budget.
According to the joint works committee minutes Mr Chapman said the plant costs were "up again" due to labour and overheads. He said while weekday costs per unit were coming down weekend production and utilities put the "cost score card in the red".
Since the Echo broke the story Southampton Test MP Alan Whitehead has raised the subject in the House of Commons and called for talks between the Government and Ford management.
Commenting on the latest revelations Dave Osborne, the Unite union's national secretary for the car industry, said: "Southampton is not being cut back in isolation compared to plants across Europe. It's the recession that's impacting all of them. It's got nothing to do with the story you've been running.
"The meeting with regard to further investment has been adjourned till the end of August. There is nothing else that has changed."
The company is yet to say when a final decision would be made on the future of the plant and its workers.
Your Say YourDaily Echo
ford rus, southampton says...
1:23pm Tue 22 Jul 08
southy, redbridge says...
1:31pm Tue 22 Jul 08
Bambi, says...
1:32pm Tue 22 Jul 08
southy wrote:"Labour" would encompass management. It covers all work carried out by personnel
Mr Chapman said the plant costs were "up again" due to labour and overheads. He said while weekday costs per unit were coming down weekend production and utilities put the "cost score card in the red".
umm intresting dont count the cost of managerment whitch cost the most or has he inclued that under labour cost
George, says...
1:39pm Tue 22 Jul 08
southy, redbridge says...
1:39pm Tue 22 Jul 08
George, says...
1:43pm Tue 22 Jul 08
southy wrote:That's not such a massive salary considering the responsibility they have, especially if you're counting stock in that figure. Say what you like about upper management of any company, but you couldn't do their job and that's that. No, you couldn't.
when you got to many managerment earning more that £100.000 a year thats counting the shares they got in the company.
If they didn't get it from Ford, they'd get it elsewhere, and Ford would have mediocre, ineffective management. Arguably, they already do have, but it could always be worse
Unless you're angling for communism, Southy, fat-cat pay packets are just a fact of life you may as well get used to
southy, redbridge says...
1:48pm Tue 22 Jul 08
George, says...
1:55pm Tue 22 Jul 08
southy wrote:I beg to differ. Any redundancies I've ever seen have involved people from the shop floor all the way to upper management. It's easy enough to believe that there's a big evil corporation twirling its collective moustache and plotting the downfall of good, honest workers, but the reality is somewhat different. If someone isn't needed any more, they're gone. Doesn't matter what their position was.
i know its not alot really,some of the real top boys get alot more.but when it comes to cuts in a company they all ways start at the bottom and work up,when they should start at the top to make savings and work down.i dont think i would want his job i had enough when running my own company.
Get it right, Hythe says...
1:58pm Tue 22 Jul 08
southy wrote:You ran your own company and you can't spell "management" (or anything else for that matter)...
i know its not alot really,some of the real top boys get alot more.but when it comes to cuts in a company they all ways start at the bottom and work up,when they should start at the top to make savings and work down.i dont think i would want his job i had enough when running my own company.
southy, redbridge says...
2:00pm Tue 22 Jul 08
southy, redbridge says...
2:02pm Tue 22 Jul 08
Get it right wrote:dont need to be able to spell has long has you are under stood,and that company is still going and still running all round the world.just not by me any more.
southy wrote:You ran your own company and you can\'t spell \"management\" (or anything else for that matter)...
i know its not alot really,some of the real top boys get alot more.but when it comes to cuts in a company they all ways start at the bottom and work up,when they should start at the top to make savings and work down.i dont think i would want his job i had enough when running my own company.
Get it right, Hythe says...
2:06pm Tue 22 Jul 08
southy wrote:Pardon?
Get it right wrote:dont need to be able to spell has long has you are under stood,and that company is still going and still running all round the world.just not by me any more.
southy wrote:You ran your own company and you can\'t spell \"management\" (or anything else for that matter)...
i know its not alot really,some of the real top boys get alot more.but when it comes to cuts in a company they all ways start at the bottom and work up,when they should start at the top to make savings and work down.i dont think i would want his job i had enough when running my own company.
George, says...
2:10pm Tue 22 Jul 08
southy wrote:Other way round, Southy. In this instance, they're on about laying off just over 1000 workers. If their salary averages out at £25k (rough estimate), that's an annual salary bill of £50m or so to pay them. Compare that to a dozen executives on £100k. A cost of not much more than £2m p/a. Which is bigger?
they not evil they just look after there own first and i cant blame them for that, but it still starts at the bottom first and works up,(start with a small saving and work up to the big saving)
southy, redbridge says...
2:19pm Tue 22 Jul 08
George, says...
2:25pm Tue 22 Jul 08
southy wrote:Private company, was it? There's the difference, then. Ford are answerable to their shareholders, end of story. Their primary responsibility is to maximise the returns the shareholders see. You're comparing apples and oranges, really. In a company the size of Ford, the shop floor staff are actually pretty expendible, far more so than the executives. Not nice, I know, but fact nonetheless
i understand what your saying but they should start at the top first.like me when i was incharge of my rigging company if the times went lean then i would go with a wage.look after the work force because they are the ones that will keep a company going. start losing your work force that knows what they are doing and its hard to replace them.with out the added cost of training new people.
southy, redbridge says...
2:45pm Tue 22 Jul 08
george take no notice of get right he just one them nik-pickers.
George, says...
2:55pm Tue 22 Jul 08
southy wrote:The reason companies sell shares is to raise capital. You would do, if you wanted to expand in a certain direction at a certain rate. Everything a company does, it does in order to make more money. Remember that, and suddenly a lot of things make more sense, and at the same time, disgust you a bit more!
this is true george. i would not have shares it would kill the company,
george take no notice of get right he just one them nik-pickers.
General Malaise, Nearby says...
3:23pm Tue 22 Jul 08
US sneezes, we all catch cold.
The reduction in output is down to market influences - i.e. no demand.
Low demand caused by low confidence in economies worldwide, in turn caused by credit crunch, in turn caused by major financial institutions not managing their mortgage portfolio properly because they wanted to make big money.
Greedy bankers screw up - we all pay !
George, says...
3:29pm Tue 22 Jul 08
General Malaise wrote:Well, in all fairness, greedy bankers screw up on behalf of customers, but yeh, that's about the size of it!
That's globalisation for you !
US sneezes, we all catch cold.
The reduction in output is down to market influences - i.e. no demand.
Low demand caused by low confidence in economies worldwide, in turn caused by credit crunch, in turn caused by major financial institutions not managing their mortgage portfolio properly because they wanted to make big money.
Greedy bankers screw up - we all pay !
Ford Worker, Happy Swaythling says...
3:42pm Tue 22 Jul 08
southy, redbridge says...
3:47pm Tue 22 Jul 08
Militant Ford Worker, swaythling says...
5:10pm Tue 22 Jul 08
Ford Worker wrote:You will be going on the dole, or into retirement depending on your age!
Are we going on a 3 day week again with the two down days on full pay!Or use the two spare days for clean up or training?
When we had the 3 day week lay off pay was 'only' 80% of full rate. - I dont know about you, but since 100% lay off pay came in I have always been required to come in to do cleanup or training on production down days.
vanessa, eastleigh says...
5:34pm Tue 22 Jul 08
Denzil, Hampshire says...
5:43pm Tue 22 Jul 08
Keith Oftergrass, says...
5:54pm Tue 22 Jul 08
vanessa wrote:What a good idea, transfer some of the families from the Swaythling/Mansbridg
Here's an easy sum for everyone:sell ford swaythling off at a huge profit and re-invest in other site's,offer employees job transfers to other site's and everyone (big bossses) are happy!!
e areas up north or somewhere - sure you'll see a better Southampton as a result (provided you don't replace them with more chavs)
oregon, soton says...
9:12pm Wed 23 Jul 08
Get it right, Hythe says...
9:42pm Wed 23 Jul 08
southy wrote:It should be "...those nit -pickers"...
this is true george. i would not have shares it would kill the company,
george take no notice of get right he just one them nik-pickers.
get it seen to, says...
10:38am Thu 24 Jul 08
Get it right wrote:You need help. Well done for proving my theory that any idiot can sit and pick holes in spelling mistakes all day long
southy wrote:It should be "...those nit -pickers"...
this is true george. i would not have shares it would kill the company,
george take no notice of get right he just one them nik-pickers.
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southy, redbridge says...
1:08pm Tue 22 Jul 08
umm intresting dont count the cost of managerment whitch cost the most or has he inclued that under labour cost