Ford to close engine plant in Wales in latest blow to UK car sector

By Costas Pitas

 

A road sign is seen near the Ford engine plant at Bridgend, Wales, Britain June 6, 2019. REUTERS/Rebecca Naden

 

LONDON (Reuters) - Ford said it would close its plant in Bridgend, south Wales next year because of falling demand for some of its engines, putting 1,700 jobs at risk in a further blow to Britain's once booming car industry.

 

Ford, which will take a roughly $650-million pre-tax charge to cover the cost of closing the plant, is making cuts in several countries to turn around loss-making operations in a stagnating European car market.

 

The U.S. automaker has also repeatedly warned the UK government that it needs free trade to be maintained with the European Union after Britain leaves the bloc, but said Thursday's announcement "has nothing to do with Brexit".

 

Production of Ford's 1.5-litre petrol engine, which has seen lower demand, will end in February, whilst a contract to supply Jaguar Land Rover (JLR) finishes in September 2020.

 

Britain's once thriving car sector, rebuilt since the 1980s mainly by foreign carmakers, has suffered slumps in sales, output and investment over the past two years.

 

"Changing customer demand and cost disadvantages, plus an absence of additional engine models for Bridgend going forward make the plant economically unsustainable in the years ahead," said Ford Europe President Stuart Rowley.

 

The Bridgend plant, which opened in 1977, built around 20 percent of Britain's 2.7 million automotive engines last year.

 

Ford said it was committed to its other British engine factory in Dagenham, east London. The firm builds a total of 1.3 million engines in Britain which are exported for fitting in vehicles in Germany, Turkey, the United States and elsewhere.

 

Britain's biggest trade union vowed to fight the factory closure.

 

"We will resist this closure with all our might, and call upon the governments at the Welsh Assembly and Westminster to join us to save this plant," said Len McCluskey, head of the Unite union.

 

Ford said in January a turnaround of its European operations would involve cutting thousands of jobs, possible plant closures and discontinuing loss-making vehicle lines.

 

It is axing more than 5,000 jobs in Germany and more than 500 white-collar roles in Britain.

 

Workers have long pushed for Bridgend to produce hybrid technology and electric vehicle components alongside a new third-party manufacturer to fill any surplus space but such investment has not been forthcoming.

 

"Significant efforts to identify new opportunities have not been successful," said Ford.

 

The Ford plant closure is the latest blow to the sector this year. JLR has said around 4,500 mainly British jobs would go and Honda has said up to 3,500 roles would be axed when it closes its British plant in 2021.

 

A series of investment decisions are also pending as sales continue to slide, including whether Peugeot parent PSA will keep its Ellesmere Port plant open and if JLR will choose to make electric cars in Britain.

 

British car sales are down 3.1 percent so far this year, after falling in 2017 and 2018.

 

Ford is among many major carmakers which are opposed to a no-deal Brexit, fearing it could add tariffs and customs checks to their vehicles, engines and components, raising costs.

 

Thursday's announcement, a day after the U.S. President left Britain and as the governing Conservatives pick a new leader, comes as French politicians are scrambling to fend off blame for the collapse of a proposed merger of Renault and Fiat Chrysler.

 

(Reporting by Costas Pitas; editing by Guy Faulconbridge/Elaine Hardcastle)

 

-- © Copyright Reuters 2019-06-07

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This afternoon on Bloomberg I heard a very strange comment attributed to Ford. According to the Bloomberg analyst, Ford claims there is little demand for gasoline powered engines??!!

 

So what's going on?

 

Are electric vehicles becoming that popular in the UK?

 

Is Ford just looking for excuses?

Pure madness to experiment with economical suicide (aka Brexit) in such a tense environment rather than ensuring stability to what’s left. 

3 hours ago, webfact said:

Thursday's announcement "has nothing to do with Brexit".

I believe you.

Look on the bright side.

 

1700 Welshmen waiting like coiled springs to leap into action when the U.K. clinches all those lucrative international trade agreements.

2 hours ago, Watchful said:

This afternoon on Bloomberg I heard a very strange comment attributed to Ford. According to the Bloomberg analyst, Ford claims there is little demand for gasoline powered engines??!!

 

So what's going on?

 

Are electric vehicles becoming that popular in the UK?

 

Is Ford just looking for excuses?

Brexit

And which part of this do the posters not understand - this is a business decision

 

Production of Ford's 1.5-litre petrol engine, which has seen lower demand, will end in February, whilst a contract to supply Jaguar Land Rover (JLR) finishes in September 2020.

6 minutes ago, soalbundy said:

Brexit

Little to do with Brexit, but of course there are plenty of people who would want to blame Brexit.. Mercedes are in strife but I don't think they are blaming Brexit ? .. more like falling demand from China... I think it is reconned that by 2025, it will be more economical to buy and run an electric car in Europe than a petrol car, so who would then buy a petrol car... who wants to guess the name of the big manufacturer that will be no more in the near future ? Chrysler/Fiat ?...

1 hour ago, Watchful said:

This afternoon on Bloomberg I heard a very strange comment attributed to Ford. According to the Bloomberg analyst, Ford claims there is little demand for gasoline powered engines??!!

 

So what's going on?

 

Are electric vehicles becoming that popular in the UK?

 

Is Ford just looking for excuses?

Diesel engined vehicles are already being hit hard, when I bought my last Ford transit van 3 years ago I could have any engine I wanted as long as it was diesel...

 

Even that 3 year old engine will cost me £8 (10USD/320THB) a day with introduction of Birmingham's clean Air Zone by the end of the year. seems at the time I bought my van Ford were well behind other engine manufacturers and had I bought a van by another manufacturer I would not have to pay the Clean air leavy/tax.

 

Seems we have waited to long for motor manufacturers to bring in electric vehicles so now they are being forced to do so, the development and manufacture electric vehicles in the UK would be a good long term investment, Particularly in the development and manufacture of electric motors, batteries and the the electronic drive systems but it the short term it is going to leave a hole in our economy.

 

Brexit has a lot to do with closure of manufacturing plants in the UK and the uncertainty over if we will have a deal or even if we will leave means there is no plans by international companies to invest in the UK, almost certainly had we not been planning to leave the EU there would have been EU cash for development of electric vehicles in the UK.

26 minutes ago, soalbundy said:

Brexit

Who are the Germans blaming for the 5000 job losses Ford announced back in March?

Edited June 7, 20197 yr by evadgib

20 minutes ago, canopus1969 said:

And which part of this do the posters not understand - this is a business decision

 

 

Production of Ford's 1.5-litre petrol engine, which has seen lower demand, will end in February, whilst a contract to supply Jaguar Land Rover (JLR) finishes in September 2020.

Yes, I do believe demand is declining. I also do believe Ford not wanting to get into a political battle and declaring it has nothing to do with Brexit. I don't necessarily believe that to be the whole truth.

Probably Ford getting out of the saloon/sedan market so don't need those engines anymore. 

31 minutes ago, canopus1969 said:

And which part of this do the posters not understand - this is a business decision

 

 

Production of Ford's 1.5-litre petrol engine, which has seen lower demand, will end in February, whilst a contract to supply Jaguar Land Rover (JLR) finishes in September 2020.

https://www.ford.co.th/en/about-ford/careers/

2 hours ago, welovesundaysatspace said:

Pure madness to experiment with economical suicide (aka Brexit) in such a tense environment rather than ensuring stability to what’s left. 

 

No, no. This excellent Conservative government, saturated with economic, financial and political genius are well equipped to deal with anything and everything! Bolstered now by growing support for the gifted Mr. Farage and his unique "one policy only" new company Brexit which is the first limited company to have employees elected to the EU Parliament. And the robust loyal opposition, under the visionary well-loved leader, will continue ensuring parliament functions in it's checks and balances like a well oiled machine.

 

What could possibly go wrong on RMS Britanic??

 

Meanwhile from Ford India.???? 

 

All-New 1.5l Ti-VCT Petrol Engine

Delivering More for Less

Ford’s latest 1.5-litre naturally aspirated engine is powered by 3-Cylinders along with state-of-the-art technical solutions for improved performance and efficiency while reducing size, weight and friction.

 

 

 

 

 

Just the tip of the Brexit iceberg 

yet trump who shows no fear of contradicting himself said brexit is good for the uk!  farage should  start wondering if brexit is a bright idea

1 hour ago, Basil B said:

Diesel engined vehicles are already being hit hard, when I bought my last Ford transit van 3 years ago I could have any engine I wanted as long as it was diesel...

 

Even that 3 year old engine will cost me £8 (10USD/320THB) a day with introduction of Birmingham's clean Air Zone by the end of the year. seems at the time I bought my van Ford were well behind other engine manufacturers and had I bought a van by another manufacturer I would not have to pay the Clean air leavy/tax.

 

Seems we have waited to long for motor manufacturers to bring in electric vehicles so now they are being forced to do so, the development and manufacture electric vehicles in the UK would be a good long term investment, Particularly in the development and manufacture of electric motors, batteries and the the electronic drive systems but it the short term it is going to leave a hole in our economy.

 

Brexit has a lot to do with closure of manufacturing plants in the UK and the uncertainty over if we will have a deal or even if we will leave means there is no plans by international companies to invest in the UK, almost certainly had we not been planning to leave the EU there would have been EU cash for development of electric vehicles in the UK.

So we would have had EU cash, this obviously comes from the billions we pay in, sounds like a good business plan to me,  not,  

3 hours ago, Chomper Higgot said:

Look on the bright side.

 

1700 Welshmen waiting like coiled springs to leap into action when the U.K. clinches all those lucrative international trade agreements.

Yes. To quote Trump: winning!!!

18 minutes ago, IssanMichael said:

So we would have had EU cash, this obviously comes from the billions we pay in, sounds like a good business plan to me,  not,  

Let's put it this way, the EU has invested Billions in hand outs for development, while successive British governments has handed out Billions to keep open failing manufacturing plants.

2 hours ago, canopus1969 said:

And which part of this do the posters not understand - this is a business decision

Production of Ford's 1.5-litre petrol engine, which has seen lower demand, will end in February, whilst a contract to supply Jaguar Land Rover (JLR) finishes in September 2020.

Yes Ford owned by ?? and BMW and Jaguar Land Rover are to join forces on developing electric car technologies.

 

1 hour ago, stevenl said:

Yes, I do believe demand is declining. I also do believe Ford not wanting to get into a political battle and declaring it has nothing to do with Brexit. I don't necessarily believe that to be the whole truth.

The truth will be how long does a battery last. ????

2 hours ago, evadgib said:

Who are the Germans blaming for the 5000 job losses Ford announced back in March?

 

Ford -  ???????? ; wants to avoid again  "red color" in its German books, as in Cologne of 2018.

Why? Sleeping. At now and this year no electric cars available.....

 

Do you believe Ford would like to invest in a country where the economical future is unpredictable .... because of Brexit??!

Edited June 7, 20197 yr by puck2

Is that where they made the welsh plugs?

32 minutes ago, Kwasaki said:

Yes Ford owned by ??

I believe the Ford family because of 40% voting rights through special class B shares. 

33 minutes ago, Kwasaki said:

2 hours ago, canopus1969 said:

And which part of this do the posters not understand - this is a business decision

Production of Ford's 1.5-litre petrol engine, which has seen lower demand, will end in February, whilst a contract to supply Jaguar Land Rover (JLR) finishes in September 2020.

Yes Ford owned by ?? and BMW and Jaguar Land Rover are to join forces on developing electric car technologies.

And although a tie up with BMW and JLR intend to join forces lot depends on how Brexit will pan out...

39 minutes ago, Kwasaki said:

2 hours ago, stevenl said:

Yes, I do believe demand is declining. I also do believe Ford not wanting to get into a political battle and declaring it has nothing to do with Brexit. I don't necessarily believe that to be the whole truth.

The truth will be how long does a battery last. ????

A Charge or life cycle?

 

The development of rechargeable batteries, is progressing like "Moore's Law" twice the capacity, for half the size and half the cost every few years...

 

The secret is how to reduce the thickness of materials used as is only the surface of the conductive material that converts the charge.

they closed their plants in Australia years ago

1 minute ago, Basil B said:

A Charge or life cycle?

 

The development of rechargeable batteries, is progressing like "Moore's Law" twice the capacity, for half the size and half the cost every few years...

 

The secret is how to reduce the thickness of materials used as is only the surface of the conductive material that converts the charge.

When you pack a large amount of energy into a small device, it is generally referred to as a "bomb". More than a few electric cars and even mobility scooters have burst into flame, some with fatal results.

8 minutes ago, Ozman52 said:

When you pack a large amount of energy into a small device, it is generally referred to as a "bomb". More than a few electric cars and even mobility scooters have burst into flame, some with fatal results.

Never heard of a petrol powered vehicle catching fire or exploding.

 

Never happens.

12 minutes ago, Ozman52 said:

When you pack a large amount of energy into a small device, it is generally referred to as a "bomb". More than a few electric cars and even mobility scooters have burst into flame, some with fatal results.

So do petrol and diesel vehicles combust...

 

As far as Mobility scooters, most still use the old lead acid technology, I Know, I have just changed my mums...

Edited June 7, 20197 yr by Basil B