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Source: merrymuuu, Shutterstock
Summary
- Ford Motor Co to regain complete authority over its Halewood transmission plant.
- The plant was previously run as an equal partnership with German firm Getrag.
- The decision is expected to safeguard 700 jobs on the site.
In a move that is viewed as a show of faith in UK’s beleaguered car manufacturing sector, Ford Motor Co has now regained the complete authority of its Halewood transmission plant. The deal is significant as the Ford will acquire the whole plant, which is expected to safeguard as many as 700 jobs.
The Halewood site manufactures transmission systems for Ford cars but was previously managed along with German company Getrag. Previously, the whole site used to be run by Ford, but it came to be known as Jaguar Land Rover headquarters after Ford sold Jaguar and Land Rover to India-based Tata Motors Ltd.
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What it means?
Ford opened the production plant in Halewood in the 1960s and Ford Escort, Orion and Capri were assembled at this site, which resulted in a boom for jobs. However, in 1997, the company announced that Ford Focus, which was being brought as a replacement for Escort, would be manufactured in Germany and Spain. In 2001, Ford announced the Jaguar X-Type would be manufactured at the Halewood site.
By 2008, Ford decided to sell Jaguar and Land Rover to Tata Motors for a whopping amount of £1.05 billion and later both the brands were merged. As part of the terms of agreement, ownership of the Halewood plant was retained by Ford and run in an equal partnership with Getrag, was known as Magna PT. Ford’s complete ownership of Halewood would bring all the employees of the plant under Ford’s umbrella.
Speaking after the acquisition, Halewood’s plant manager Andy Roche said it was a historic decision and was a result of the hard work done by the management and trade unions for over 20 years. He said that the plant has the best in terms of cost, quality and delivery because of the new methods that have been adopted at the site over the years.
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Why is it important?
Roche said the decision is significant because a blue-chip company investing in the area and reposing their faith in the workers of the site would be prosperous for the Liverpool region.
Ford’s decision is crucial as the UK auto sector continues to struggling with the pandemic. Moreover, post-Brexit the changed trading terms with the EU (European Union) trade bloc is also likely to impact its fortunes. Car production in January fell 27 per cent year-on-year due to disruptions in the global supply chains.
The auto sector has also sought the government’s help in the forthcoming budget to boost the competitiveness of the sector and protect livelihoods. Ford’s decision sends out a clear signal that big names in the business are still positive about investing on workers and resources despite the changing trade equations in the UK and pandemic uncertainties.
