eu pays ford 80m to take production out of uk

[nick mercedes]

"Ford's £80m EU loan to boost Turkey factory - and close Southampton's Swaythling plant"

"£10m of UK Government cash was approved to help British Ford operations just days before the Swaythling bombshell was dropped.

And now we have learnt that a cheap £80m EU loan to ramp up production of Transit vans in Turkey was also signed off just months before Ford’s devastating Southampton announcement."

"For a year there has been a plan in place to take the jobs at Ford away from Southampton and move them to Turkey.

“But the sting in the tail is that the money to update the (Kocaeli) factory is coming from those same workers and their families as British taxpayers are being forced to lend millions of pounds without ever being consulted.”"

Ford's £80m EU loan to boost Turkey factory - and close ours (From Andover Advertiser)

 

[NOMONEYBUTAMERC]

It would appear that Ford witheld their closure plans from the government when negotiating the £10m. You must remember that the governments of the past 30 years or so have done next to sodall to help U.K. industry.

 

[Stratman]

I wonder if the gummint will do to Ford what they did to (I think) Peugeot and demand the return of a grant after a factory closure?

 

[mattc]

I wonder if the gummint will do to Ford what they did to (I think) Peugeot and demand the return of a grant after a factory closure?

What's the betting they forgot to write that into the loan contractf

 

[Darrell]

No wonder Turkey want to join the EU.

 

[Palfrem]

So the EU are lending money at cheap rates to destroy jobs in the community?

That's a good idea.

 

[finisterre]

classic

 

[carat 3.6]

I hope one of the daily newspapers puts this story on the front cover.

 

[stevieb15]

I hope one of the daily newspapers puts this story on the front cover.

If its true I expect that will happen.

 

[grober]

Time to look at the bigger strategic picture?? 1. Ford is an American company with large European interests. 2. TURKEY borders on SYRIA / IRAQ / IRAN is currently in low level conflict with Syria and a major conduit for certain rebel groups there. 3. Turkey has always been viewed as a sympathetic Muslim "strategic country" in relation to Europe- it's a member of NATO [ A relic of the cold war sure but still very useful as a base for military operations in the Middle East] 4. With the background of possible American/Nato influence waning in Egypt----- if you regard the EU grant as a sort of NATO "protection money" it begins to make more sense- although obviously not the workers in Southampton.

 

[trapperjohn]

If its true I expect that will happen.

But not the Mail - people will just thinking is moaning again.

Wonder if it might pop up on Question Time?

 

[Wagon]

A mate of mine has been in Turkey for well over a year on contract to FoMoCo building the new transit line , it's been on the cards for a loooooong time .. a bunch of other mates who work at Dunton are pretty worried about the UK prospects though..

 

[Ream]

Time to look at the bigger strategic picture?? 1. Ford is an American company with large European interests. 2. TURKEY borders on SYRIA / IRAQ / IRAN is currently in low level conflict with Syria and a major conduit for certain rebel groups there. 3. Turkey has always been viewed as a sympathetic Muslim "strategic country" in relation to Europe- it's a member of NATO [ A relic of the cold war sure but still very useful as a base for military operations in the Middle East] 4. With the background of possible American/Nato influence waning in Egypt----- if you regard the EU grant as a sort of NATO "protection money" it begins to make more sense- although obviously not the workers in Southampton.

True but that's all politics, turkey and morocco have been opening factories ports for the last 10 years, look up Renault tangiers a partly state owned company. Health and safety EU laws TAX unions working hours expensive transportation sick holiday pay pensions probably have more to Do with it.

 

[Igurisu]

Unfortunately its ultimately about the bottom line, share price and being able to pay dividends to share holders. The human cost does not factor into these or other similar business decisions.

If people were to start voting with their wallet, which truth be told is unlikely, then maybe things would change in the future. IE, if Ford didn't sell another car in the UK (Belgium could also join in here), it would make them think twice about this type of cost saving idea in the future.

They would have to look not only at the savings made by production in a low cost country, but also the corresponding loss of sales to see if it was really a net benefit to the company.

 

[Mr E]

Unfortunately its ultimately about the bottom line, share price and being able to pay dividends to share holders. The human cost does not factor into these or other similar business decisions.

If people were to start voting with their wallet, which truth be told is unlikely, then maybe things would change in the future. IE, if Ford didn't sell another car in the UK (Belgium could also join in here), it would make them think twice about this type of cost saving idea in the future.

They would have to look not only at the savings made by production in a low cost country, but also the corresponding loss of sales to see if it was really a net benefit to the company.

Absolutely agree.

When it comes to social conscience, it starts with us as individuals. I'm as guilty as the next man when it comes to this - I go for the easy, cheaper option on many occasions.

It's very easy to wring our hands and cry "shame" about many perceived injustices, but whether it's in the choice of vehicle manufacturer, trainer brand, coffee shop, electrical goods supplier, or even public service vs taxation, we don't often vote with our conscience.

Perhaps if we were to try supporting our local communities better - local shops and suppliers, etc - rather than doing what the big corporates do that we hate so much (squeeze the last penny out of everything) then th world may be a slightly better place.

Whimsical perhaps, but food for thought?

 

[grober]

Unfortunately its ultimately about the bottom line, share price and being able to pay dividends to share holders. The human cost does not factor into these or other similar business decisions.

If people were to start voting with their wallet, which truth be told is unlikely, then maybe things would change in the future. IE, if Ford didn't sell another car in the UK (Belgium could also join in here), it would make them think twice about this type of cost saving idea in the future.

They would have to look not only at the savings made by production in a low cost country, but also the corresponding loss of sales to see if it was really a net benefit to the company.

Is there not a cost/import restriction implication for goods made outwith the EEC anyway? Or do these companies have a way round that by having other subsidiaries inside Europe? Don't know the answer to that one just asking. Other European nations seem to have more success playing hard ball with these multinationals than we do. Witness what happened with Germany Opel and General motors.

 

[Igurisu]

Is there not a cost/import restriction implication for goods made outwith the EEC anyway? Or do these companies have a way round that by having other subsidiaries inside Europe? Don't know the answer to that one just asking. Other European nations seem to have more success playing hard ball with these multinationals than we do. Witness what happened with Germany Opel and General motors.

There are no import restrictions or import duties from Turkey to the EU.

Turkey is one of only four countries that are in a customs union with the EU (the others are Andorra, Monaco and San Marino). The customs union took effect on 31 December 1995 and foresees, in principle, that all traded goods circulate free of duty or import restrictions between the two sides

EU-South Korea trade deal sparks no joy in Turkey | European Voice

I agree that other EU nations are better at playing hardball, this is usually due to the employment laws that make it much more difficult (expensive) to make people redundant or shut down plants in some countries.

As we know, the UK is probably the easiest and cheapest place within the EU to close down factories or make people redundant. My understanding is that this is a strategy to encourage investment and growth in the UK (cheap to start up and cheap to close if neccessary). Whether overall there is a positive or negative effect on the economy I have no idea.