Ford gears up to close Bridgend plant in September 2020, in ‘hammer blow’ for 1,700 workers
Ford is preparing to close its factory in south Wales next year, in another blow for Britain’s car manufacturing industry.
The move comes as a disaster for the 1,700 workers at the Bridgend plant, which makes petrol engines.
Read more: Ford announces 7,000 job cuts across the globe
Ford confirmed this afternoon it was consulting with unions on closing the plant in September 2020. The firm’s Europe president Stuart Rowley said it will be “economically unsustainable in the years ahead”.
This is because of “changing customer demand and cost disadvantages,” he said.
He also put it down to “an absence of additional engine models in the years ahead”.
“As a major employer in the UK for more than a century, we know that closing Bridgend would be difficult for many of our employees,” Rowley said.
“We recognise the effects it would have on their families and the communities where they live and, as a responsible employer, we are proposing a plan that would help to ease the impact.”
Rowley told journalists Ford would begin sourcing the engines made in Bridgend from Mexico.
A ‘hammer blow to the Welsh economy’
GMB Union regional organiser Jeff Beck said: “We’re hugely shocked by today’s announcement.”
“It’s a real hammer blow for the Welsh economy and the community in Bridgend.”
“Regardless of today’s announcement GMB will continue to work with Ford, our sister unions and the Welsh government to find a solution to the issue and to mitigate the effects of this devastating news.
Ford arranged a meeting for this morning to discuss the future of the plant with unions some time ago, but changed the agenda at late notice, GMB told City A.M.
Rowley said he had spoken to business secretary Greg Clark about the plans.
A government spokesperson said the news would be “very worrying” for workers.
“Ford has committed to supporting employees throughout the consultation process and beyond, including with redeployment opportunities to other Ford sites in the UK. At the same time, they have also reaffirmed their commitment to their other sites in the UK,” they said.
“The UK government will be working closely with Ford, local stakeholders and trade union representatives through the consultation.”
Labour’s shadow business secretary Rebecca Long Bailey said: “This is truly terrible news for the 1,700 workers directly employed at the plant, all those in the supply chain, their families and the wider community in Bridgend.
“The Tories need to wake up to reality: they are dragging our manufacturing base into oblivion. Their leadership candidates are vying to inflict the most damaging form of Brexit, and not one of them has a strategy for the challenges facing the automotive sector.
“The government must immediately start working with the Welsh Government, trade unions and Ford to rescue the plant. If they don’t, then once again the Tories’ legacy will be decimated industries, from steel to car manufacturing.
Ford confirms 500 additional white collar job cuts
It follows reports that Ford was separately planning 550 white collar job cuts in the UK, part of a wider scale-back worldwide.
The firm will make the reductions among office workers at its Essex base, who work on matters including vehicle development.
“Voluntary employee separation programmes are expected to reduce in excess of 5,000 jobs in Germany, while more than 500 salaried employees have volunteered for packages in the UK,” it said.
Read more: Honda confirms 2021 Swindon factory closure
Ford is in the midst of a global turnaround effort, including a plan to streamline its European operations which reported a modest $57m (£43.9m) first-quarter profit last month.
As part of the strategy, it announced in March it would reduce its 24,000 strong workforce in Germany by 5,000 people, including temporary staff.
Neither announcement is expected to impact its UK manufacturing employees who work at Ford’s other factories in Dagenham or Halewood, of whom there are around 3,000 in total.