Ford to cut Transit production (From Daily Echo)

Ford to cut Transit production

12:16pm Tuesday 22nd July 2008 in

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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.