Nissan in talks over building electric cars

Feb 6 2009 by William Green, The Journal

Sales fall as Ford eyes more cuts

THE car industry suffered a double blow yesterday as Ford faced the threat of industrial action over plans to axe 850 jobs and freeze pay, while new car sales slumped by almost a third.

Ford’s Transit van plant in Southampton will be hardest hit, with between 400 and 500 jobs set to be lost by May, and a further 350 posts cut across the company through a restructuring of salaried staff.

Ford also announced that it wanted to "re-evaluate" this year’s pay deal of 5.2%, saying that its business situation had worsened "significantly" since it was drawn up last October.

"Such a serious step would not normally be contemplated but in the unprecedented circumstances the priority is to ensure a sustainable Ford Motor Company," said the firm.

Unite attacked the announcement as a "betrayal" and warned it would ballot for industrial action unless the plans were reconsidered.

The row blew up as the Society of Motor Manufacturers and Traders reported that 112,087 new cars were registered in January, the lowest January figure since 1974 and a fall of 30.9% compared with a year ago.

The SMMT stepped up its call for the Government to offer financial aid to owners of older cars to help them buy newer models under a so-called scrappage incentive scheme by which their cars would be taken off the roads.

Chief executive Paul Everitt said: "There is a clear need to stimulate demand for new vehicles in the UK market."