THE financial crisis looming over the future of Southampton’s Ford Transit plant was underlined when the car giant reported record losses of £10.2 billion.
Ford blamed an “extraordinary slowdown” in sales across the world for the dire results – the worst in its 105-year history.
But Ford said it would not seek additional US Government aid, insisting it was on track to begin making profits when economic conditions recover.
The losses come amid fears for the future of the Southampton plant, which has gone to a single shift due to a slump in demand.
A worker, who did not want to be named, said: “This is bad news and I think all the workers will be worried.
“It is a terrible pressure to be living and working with, and I think most will be wondering if Ford are going to start shutting plants to try to make savings. They can make all the promises they want about Southampton, but they won’t mean anything if they keep losing money at this rate.”
Unite union regional officer Ian Woodland said: “It looks very serious to me.
“The workers will not be surprised, as they are taking bad news on a daily basis at the moment.
“I think a considerable layer will think this will be the end for the Southampton plant. This economic downturn will claim some big-name casualties, and I just hope Ford can weather the storm.”
Although Ford insists it has a future in Southampton, plans to shift production of the Transit to Turkey are likely to be approved, leaving the Swaythling plant to make the chassis cab variant with a significantly reduced workforce.
Ford, America’s second largest car-maker, said it had made a £4.1 billion loss in the fourth quarter to December 31. The full year figure compares to a £1.9 billion loss in 2007.
Financial officer Lewis Booth said Ford was on track to break even in 2011, but the company anticipates worldwide sales to fall more than ten per cent in this year.
Ford Europe reported a pre-tax loss of £231m compared to a profit of £156m in the previous year.
Ford and its dealers employ around 35,000 people across the country in product development, manufacturing, sales and marketing, and service roles.
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