Ford U.K. Says Engineering Smooth Restructuring

With two of its plants to close within days, Ford U.K. says it is meeting its commitment to maintain local investment and to complete its restructuring plans entirely through voluntary separations or redeployment within the company.

Ford of Europe last fall announced plans to reduce manufacturing overcapacity after a more than 20% drop in total industry vehicle demand across Western Europe, where sales are at a 20-year low with a prolonged downturn since 2008.

The revamp includes closing two U.K. facilities: the Ford Transit assembly plant in Southampton and stamping and tooling operations in Dagenham.

The auto maker says employees affected by the restructuring have received individual support and local areas have had community funds set up by Ford.

“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,” Ford Europe, Middle East and Africa President Stephen Odell says in a statement.

“We are reaffirming our commitment to the U.K. with a major investment in powertrain and engineering, which reinforces the U.K.’s central role in Ford’s global powertrain strategy and commercial-vehicle engineering.”

Ford U.K. is to remain a global center for powertrain development and production with a new next-generation, low-carbon-dioxide 2.0L diesel engine range to be manufactured at Dagenham from 2016.

The engine is to be developed at Ford’s Technical Centre in Dunton, Essex, and at the Dagenham Diesel Center. Further investment also has been announced at Ford’s Bridgend Engine Plant in South Wales to produce a new 1.5L version of the EcoBoost gasoline engine range.

Ford’s commercial-vehicle production at the Southampton plant ends July 26, and the company says all 531 employees affected have either chosen redeployment within Ford, voluntary separation or early retirement.

New and expanded Ford operations created in Southampton are providing positions for 134 of these employees.

Ford is spending £12 million ($18.1 million) on a vehicle-distribution center at the Southampton docks and a vehicle-refurbishment operation on the plant site.

The distribution center will form part of Ford’s logistics operations, handling imported-vehicle distribution and the shipping of engines to China.

Low-mileage used vehicles will be processed by the refurbishment center for the Ford direct-sales program.

Some 41 Southampton workers have taken jobs at other Ford locations in the U.K., and another 41 employees so far have taken employment outside the company.

Stamping and tooling operations at Dagenham also close July 26 and the 750 workers affected either have accepted enhanced separation terms, early retirement or redeployment within the company.

Ford is spending £1.9 million ($2.8 million) at Dagenham to establish a powertrain tool room within the engine plant. Together with other positions in the local area, this has allowed 400 employees from the stamping and tooling operations in Dagenham to be redeployed there.

Ford has created a £1 million ($1.5 million) community fund to be shared equally between Southampton and Dagenham, with the money used to support local employment and education initiatives.

During the consultation process following the restructuring announcement, Ford worked with employee representatives to establish a social plan that included hiring consultants to help individual employees with career and financial advice.

Training and education opportunities have been provided for workers. Job fairs held at each site put employees in contact with a range of potential employers.

Ford has been conducting studies into the Southampton and Dagenham Stamping and Tooling sites on environmental remediation, legal and planning matters and future potential uses of the sites.

The auto maker says it will hold detailed discussions with local authorities and other key stakeholders on the options for the marketing and reuse of the plants.