Ford said it was meeting its commitments to maintain UK investment and to complete restructuring plans entirely through voluntary separations or redeployment within the company.
“Employees affected by the restructuring actions have received individual support and local areas have benefitted by the establishment of community funds set up by Ford,” the automaker said.
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Capacity cuts announced in autumn 2012, as a result of a 20% drop in total industry vehicle demand across western Europe, with new vehicle sales at a 20-year low, saw Ford plan to axe the Transit van assembly plant in Southampton and stamping and tooling operations in Dagenham (DSTO).
The company ended UK car production with the Fiesta at Dagenham in 2003 but the UK remains a global centre for powertrain development and production. A new, low-CO2, two-litre diesel engine range will be made at Dagenham from 2016.
The engine is being developed at Ford’s Technical Centre in Dunton, Essex, and at Dagenham. Further investment has also been announced at the Bridgend Engine Plant in South Wales to produce a new 1.5-litre EcoBoost petrol engine. Dunton heads powertrain and commercial vehicle engineering worldwide.
Stephen Odell, president of Ford Europe, Middle East and Africa, said: “We understand the impact of these restructuring actions on our employees and have provided individual support to ensure that all employees have made fully informed decisions about their future on a voluntary basis. We are reaffirming our commitment to the UK with a major investment in powertrain and engineering, which reinforces the UK’s central role in Ford’s global powertrain strategy and commercial vehicle engineering.”
New businesses established in Southampton
Though commercial vehicle production at Southampton ends officially on 26 July, not all operations at there are being axed. All 531 employees affected have either chosen redeployment within Ford, voluntary separation or early retirement. New or expanded operations in Southampton are providing jobs for 134.
Ford is spending GBP12m on a vehicle distribution centre at Southampton docks and a vehicle refurbishment centre on the plant site. The distribution centre will form part of logistics operations, involved in import vehicle handling and onward distribution, and the shipping of engines to China. Low mileage used vehicles will be processed by the refurbishment centre for supply to the Ford Direct (factory certified) sales system.
A further 41 Southampton employees have taken up positions at other Ford locations in the UK and, so far, 41 employees have taken up offers of alternative employment outside the company.
New tool room at Dagenham engine plant
Stamping and tooling operations at Dagenham also close on 26 July. Again the 750 employees affected have either accepted enhanced separation terms or early retirement or will be redeployed within the company.
Ford is spending GBP1.9m at Dagenham to establish a new powertrain tool room within the engine plant. Together with other positions in the local area this has enabled 400 employees from DSTO to be redeployed within the company and a number of others are looking at opportunities outside the automaker.
Six of the last Transits produced at Southampton will be donated to local charities and communities associated with each of the sites.
The last vehicle made at Southampton is being kept for the company’s 100 vehicle heritage collection.
Communities in Southampton and Dagenham will share a GBP1m fund to support local ’employability’ and education initiatives.
Future use of the sites
Studies at the Southampton and Dagenham Stamping and Tooling sites have covered areas such as environmental remediation, legal and planning matters and future potential uses of the sites.
It is expected that the sites will be secured for employment usage and Ford will hold detailed discussions with local authorities and other key stakeholders on the options for their marketing and re-use.
