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Ford job cuts more bad news for car industry

Yet more job cuts announced this morning in car making industry.

Ford says it will cut 850 jobs across its UK operations by the end of May. Bosses are blaming the recession and with new car registrations falling by 30% in January it's clear that the situation is very grim for manufacturers.

A pay increase agreed by unions and management at Ford's Southampton plant last year is also going to be looked at again - which has really upset the unions.

Vauxhall workers will be working a shorter week with reduced pay, Honda has closed its UK plant for four months, Aston Martin is operating a three-day week, and other car makers are running reduced production schedules.

Lord Mandelson's £2.3bn support package unveiled last week doesn't provide immediate help to employers forced into implementing these measures. By the time the money filters down it will probably be too late for thousands of workers made redundant. The industry can't develop new 'greener' cars if there's no-one to build them.

The government could soon find there isn't much of a car industry in the UK to save.

Mike Berry |

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