Another Nail in the UK Manufacturing Coffin

#1
Ford shuts down UK plants, switches operations to Turkey | Economy | World Bulletin

Second-largest US car maker Ford, which recently closed down its 40-year-old Southampton plant, will be closing its Dagenham plant on July 26 and switching production to its Kocaeli plant in Turkey, where, according to Ford, the costs are “significantly lower” than anywhere in Europe, even after delivery charges.


According to media reports, a further 750 jobs will be axed with the final UK plant closure in addition to the 531 employees that were dismissed after the Southampton closure. The Southampton plant was used for Ford Transit production, while the Dagenham plant had tool and stamping operations.


The company said that the capacity of the Kocaeli plant was much bigger than the Southampton one, which produced 28,000 vans last year compared to 185,000 vehicles produced in Turkey. The company is expected to close down another production facility in Genk, Belgium, next year.
Ford have been a bunch of professional panhandlers for decades. The number of times they say to governments around the world, "give us a hand out or we will die on your doorstep" is uncountable.
I expect they extracted big tax concessions from the Turkish government who are desperate to keep their growth going in the face of riots.

1 week's notice for the workers? Shame on Ford.

Ain't globalisation Wonderful.......
 
#3
Ford is financially buggered. What do you want them to do? Carry on and go bust?

By your link Gent is going as well with the loss of 4300 jobs, so it's not just us.
 
#5
Ford Dagenham - Wikipedia, the free encyclopedia

Ford announced in October 2012 that the stamping plant activities at Dagenham would cease in Summer 2013. Some additional jobs would be created in the engine assembly departments at Dagenham, but the GMB Union stated that 1,000 jobs would be lost atDagenham saying "This is devastating news for the workforce in Southampton and Dagenham. It's also devastating news for UK manufacturing," according to the BBC [SUP][3][/SUP]
My bold.

They knew Dagenham was shedding jobs but thought Ford would retain a presence.
 
#6
Ford is financially buggered. What do you want them to do? Carry on and go bust?

By your link Gent is going as well with the loss of 4300 jobs, so it's not just us.
Genk, not Gent.

The company is expected to close down another production facility in Genk, Belgium, next year.
 
#10
Ford Dagenham - Wikipedia, the free encyclopedia



My bold.

They knew Dagenham was shedding jobs but thought Ford would retain a presence.
But they are - they're not going anywhere, not in the short term anyways. Ford UK make a massive amount of engines here - in fact around a third of their entire global engine production is done here in the UK.

And they are closing stamping because they are closing the van production, which means they don't need to do it here anymore.
 
#11
Bit of a bollox headline to be honest. The Ford story is old news, and UK manufacturing is on the rise across an awful lot of sectors, including car production.

http://www.telegraph.co.uk/finance/...h-car-production-continues-to-accelerate.html

Following a steady rise in manufacturing, it has suffered a small decline in recent months ( 0.8%) but it will be back on track soon. Anyway, do excuse my intrusion, please continue with the "UK doesn't manufacture anything, Maggie destroyed it all" nonsense..
 
#12
Ford is financially buggered. What do you want them to do? Carry on and go bust?

By your link Gent is going as well with the loss of 4300 jobs, so it's not just us.
So how does this work- everyone relocates to a cheap labour location and exports the products back into a higher wage location in order to sell them?

And where do the higher wages in that high wage location come from if everyone has relocated their business to a low wage location?

I don't blame Ford for what they are doing- it makes sense from their viewpoint- but in aggregate the strategy is a classic 'tragedy of the commons' scenario-

In economics, the tragedy of the commons is the depletion of a shared resource by individuals, acting independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the group's long-term best interests.

The 'shared resource' in this case being the wage driven demand for goods and services.
 
#13
I was in Australia recently visiting relatives, they said Ford are completely shutting down in that country as well, no more cars to be produced there. How nice of them.
 
#14
Bit of a bollox headline to be honest. The Ford story is old news, and UK manufacturing is on the rise across an awful lot of sectors, including car production.

British car production continues to accelerate - Telegraph

Following a steady rise in manufacturing, it has suffered a small decline in recent months ( 0.8%) but it will be back on track soon. Anyway, do excuse my intrusion, please continue with the "UK doesn't manufacture anything, Maggie destroyed it all" nonsense..
The UK last year produced more cars (or motors for your Brits :)) than before in a long time and is projected to hit the highest in its history in 2015 - just not done by British owned companies.
 
#15
So how does this work- everyone relocates to a cheap labour location and exports the products back into a higher wage location in order to sell them?

And where do the higher wages in that high wage location come from if everyone has relocated their business to a low wage location?

I don't blame Ford for what they are doing- it makes sense from their viewpoint- but in aggregate the strategy is a classic 'tragedy of the commons' scenario-

In economics, the tragedy of the commons is the depletion of a shared resource by individuals, acting independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the group's long-term best interests.

The 'shared resource' in this case being the wage driven demand for goods and services.
Ask the city of Detroit and MI in general....
 
#16
So how does this work- everyone relocates to a cheap labour location and exports the products back into a higher wage location in order to sell them? Correct

And where do the higher wages in that high wage location come from if everyone has relocated their business to a low wage location? Manufacturing mass product items, is not the only thing the world revolves round.

I don't blame Ford for what they are doing- it makes sense from their viewpoint- but in aggregate the strategy is a classic 'tragedy of the commons' scenario-

In economics, the tragedy of the commons is the depletion of a shared resource by individuals, acting independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the group's long-term best interests.

The 'shared resource' in this case being the wage driven demand for goods and services.
As RS mentioned we do make a lot of cars in this country, just not so many ford's. Although Ford do produce a hell of a lot of other stuff in this country.
The UK is also a world leader in Finance and New Tech, things have moved on.
 
#17
Ford Motor Company's actions are particularly ironic given the Company's founder Henry Ford ideas about growing and rewarding his workforce.

Henry Ford - Wikipedia, the free encyclopedia

Ford astonished the world in 1914 by offering a $5 per day wage ($110 today), which more than doubled the rate of most of his workers.[SUP][21][/SUP] A Cleveland, Ohio newspaper editorialized that the announcement "shot like a blinding rocket through the dark clouds of the present industrial depression."[SUP][22][/SUP]

The move proved extremely profitable; instead of constant turnover of employees, the best mechanics in Detroit flocked to Ford, bringing their human capital and expertise, raising productivity, and lowering training costs.[SUP][23][/SUP][SUP][24][/SUP] Ford announced his $5-per-day program on January 5, 1914, raising the minimum daily pay from $2.34 to $5 for qualifying workers. It also set a new, reduced workweek, although the details vary in different accounts. Ford and Crowther in 1922 described it as six 8-hour days, giving a 48-hour week,[SUP][25][/SUP] while in 1926 they described it as five 8-hour days, giving a 40-hour week.[SUP][26][/SUP] (Apparently the program started with Saturdays as workdays and sometime later it was changed to a day off.)


Detroit was already a high-wage city, but competitors were forced to raise wages or lose their best workers.[SUP][27][/SUP] Ford's policy proved, however, that paying people more would enable Ford workers to afford the cars they were producing and be good for the economy. Ford explained the policy as profit-sharing rather than wages.
Henry Ford certainly had a good grasp of sensible economics. Is it not true to say in this sense the manufacturing wealth was shared and that money was spent back into the economy?

If our economy is moving towards high finance and tech how is the wealth being produced being shared?

It is all very well rewarding a few bankers with Million Pounds in bonuses for a job well done but this does not benefit the economy of the Country does it? Does the counter clerk or cleaner of the bank get a bonus or a smidgen above minimum wage?

Or am I missing a huge point here?

Some of the labour being shed by Ford will be highly trained engineers. Who is to say they will be able to move into similar well paid jobs if manufacturing jobs are being shed whole-scale.
 
#19
The UK last year produced more cars (or motors for your Brits :)) than before in a long time and is projected to hit the highest in its history in 2015 - just not done by British owned companies.
And Ford are British owned.
How many companies move only to find the corporate grass isn't as green as they thought.

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#20
Ford Motor Company's actions are particularly ironic given the Company's founder Henry Ford ideas about growing and rewarding his workforce.

Henry Ford - Wikipedia, the free encyclopedia



Henry Ford certainly had a good grasp of sensible economics. Is it not true to say in this sense the manufacturing wealth was shared and that money was spent back into the economy?

If our economy is moving towards high finance and tech how is the wealth being produced being shared?

It is all very well rewarding a few bankers with Million Pounds in bonuses for a job well done but this does not benefit the economy of the Country does it? Does the counter clerk or cleaner of the bank get a bonus or a smidgen above minimum wage?

Or am I missing a huge point here?

Some of the labour being shed by Ford will be highly trained engineers. Who is to say they will be able to move into similar well paid jobs if manufacturing jobs are being shed whole-scale.
Big glass buildings in London, can't miss them, mostly big financial institutions. It takes more the a few fat cat bankers to fill them.
 

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