The threat of industrial action loomed over Ford's biggest UK car plant yesterday after the US manufacturer confirmed it was ending volume car production in the country after almost 70 years, with the loss of up to 1,900 jobs.
Ford's car production will transfer to its German plant and the Dagenham car plant in east London will be transformed into a technology-based centre for the design, engineering and manufacture of a range of diesel engines financed from an investment of £330 million sterling (€551.6 million) compensate for the loss of Fiesta car production in the first quarter of 2002.
More than 100,000 diesel engines could be produced at the plant over the next three years creating 500 jobs.
Ford's international design centre in Italy will move to London and there will be extra investment for the production of a new petrol engine at the Ford plant in Bridgend, south Wales, and new work for the factory in Halewood, Merseyside.
Restructuring at Dagenham will be partly based on the 1,800 Ford car workers who have already applied for 1,350 redundancies in August and a redundancy package of up to £40,000 sterling for workers over the age of 45. Ford estimates that net job losses at the plant, including redundancies announced earlier, will amount to 2,750. It insists its decision was based on over capacity in the European car market and securing long-term viability in Europe rather than sterling's strength against the euro.
The chairman of Ford Europe, Mr Nick Scheele, said the firm had planned to invest substantially in car production at Dagenham but circumstances had changed since that commitment was made some years ago. He stressed the plant would have a "secure and exciting future" making diesel engines.
Union representatives at Dagenham disputed the job losses number, claiming it would be closer to 5,000. Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union condemned Ford for breaking its word. Mr Roger Lyons, general secretary of the Manufacturing Science and Finance Union said Ford had proved that the Dagenham workforce was worth less than their counterparts in Germany.
Downing Street said any job losses were "disappointing" but that Ford's announcement was due to over capacity.
