West Midlands auto suppliers reeling from Ford Transit factory axe

FORD’S decision to close its Transit van manufacturing facility in Southampton is likely to severely impact component suppliers in the West Midlands, automotive experts have said.

The Manufacturing Advisory Service said around 50 suppliers across the region would be hit by the closure decision, announced due to the downturn in the European automotive sector.

As part of a European-wide restructuring programme Ford has said it intends to close both the Transit factory and a stamping plant in Dagenham. The decision throws 2,000 jobs into doubt.

The closures are likely to take effect from next year. Ford has also started consultations on closing its factory at Genk in Belgium with the loss of 4,300 jobs.

The decision is likely to see production of the Mondeo and S-Max transferred to Spain.
It has tried to soften the blow by announcing its intention to achieve profitable growth in its European operations within the next five years with a focus on new products.

Rachel Eade, Supply Chain Specialist for MAS, said: “This is very disappointing news for all those affected by (Ford’s) announcement, but it is part of a wider restructuring to ensure a stronger and more competitive European automotive industry.
 
“There are about 50 West Midlands suppliers to Ford, who will be impacted in various degrees. Many will have a diverse customer base and will also hope to maintain the opportunity to supply Europe from the region.”

However, there can be guarantee of this, especially with opportunities waning in the commercial vehicle sector.

It has been a bad week for the sector in the UK following the announcement on Monday that Coventry-based Manganese Bronze – manufacturer of the iconic London black cab – had been forced to call in administrators after a rescue deal for the business could not be found.

Despite the previously buoyant nature of the global automotive sector, Europe has been badly affected by the area’s currency crisis.

The economic meltdown has impacted countries across the continent with big ticket items such as vehicles badly affected and with around 40% of UK automotive exports destined for the Eurozone then the crisis has had a knock-on effect here.

Ford is not the only manufacturer to have been affected. Peugeot-Citroen in France has had to be bailed out by the French Government through a €7bn state rescue package.

Alan Mulally, Ford president and CEO, said: “Using the same One Ford plan that led to strong profitability in North America, we will address the crisis in Europe with a laser focus on new products, a stronger brand and increased cost efficiency.

“We recognise the impact our actions will have on many employees and their families in Europe, and we will work together with all stakeholders during this necessary transformation of our business.”

Unions predictably reacted angrily to the announcement.

Unite general secretary Len McCluskey said: “Ford has betrayed its workforce and its loyal customer base. Unite is going to fight these closures. This announcement has been handled disgracefully.

“Only a few months ago Ford was promising staff a new transit model for Southampton in 2014. The planned closures will really hurt the local economies and the supply chain will be badly hit – up to 10,000 jobs could be at risk.

“The Transit has been the best-selling van in the UK for over a quarter of a century. It has a future in the UK if this government is prepared to fight for real jobs and persuade Ford to keep manufacturing vehicles in the UK. It’s now time for Vincent Cable to put his words into action and intervene for the sake of British manufacturing and skilled jobs.”