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HOME arrow Manufacturing arrow Ford's Essex workforce expected to be unaffected by Tata deal arrow Registration
Ford's Essex workforce expected to be unaffected by Tata deal
Written by Sam Fountain   
Thursday, 27 March 2008
Ford's diesel technology centre in Dagenham
Ford's diesel technology centre in Dagenham
Ford says it is business as usual for thousands of its employees in Essex following the news that the global automotive giant has sold the Land Rover and Jaguar businesses to a growing force in the industry from India.

The $2.3bn (£1.14bn) deal is the culmination of Ford’s decision last August to explore strategic options for the Jaguar Land Rover business, with emerging Indian automotive firm, Tata Motors stepping up to take on the two British brands.

Ford employs thousands at its enormous facility in Dagenham Essex, but those most directly affected by the new deal would be the 2,340 employed in the manufacturing of diesel engines at the plant, which both Ford and Jaguar Land Rover have assured Business Weekly will continue as before.

"We will maintain relations with Jaguar Land Rover on a wide area of issues," said a spokesperson for Ford, "including powertrain supply, R&D and engineering support. It will all continue as before, largely unchanged."

As part of the transaction, Ford said it will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies - all from the company's Dagenham plant.

It has also committed to provide engineering support, including research and development, plus information technology, accounting and other services, in addition to providing financing for Jaguar and Land Rover dealers and customers during a transitional period through Ford Motor Credit Company.

According to Ford's 2008 schedule for its Dagenham plant, the facility will produce a total of almost 1.2m engines during the year, with over ten per cent, or 126k of those reserved for the newly divested business.

"During 2007, Jaguar and Land Rover diesel-powered retails numbered at around 164,000, which should give you a good indication of supply from Dagenham," said the director of corporate affairs at Jaguar Land Rover, Don Hume.

Tata Motors, which is part of India's largest business group and multinational company, reiterated statements of 'business as usual' made by representatives of Ford and Jaguar Land Rover, but was unable to comment on how the deal might affect its existing operations in the East of England at this early stage.

"This is a good agreement. It provides the Jaguar Land Rover management team and employees with the assurances needed to maintain their focus on delivering the best results for the business," said Lewis Booth, executive vice president, Ford Motor Company, who has responsibility for Ford of Europe, Volvo and Jaguar Land Rover.

"I am confident that, under its new owner, Jaguar Land Rover will continue to build upon the significant improvements and product successes it has achieved in recent years."

With reference to the British legends maintaining their status, all of the involved parties expressed confidence that the new owner would successfully take the brands forward.

"We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact," said Ratan Tata, Chairman of Tata Motors.

Ford said that following the sale, which is expected to close by the end of next quarter, it would contribute $600m to the Jaguar Land Rover pension plans.

The wider Tata Group now has significant interests in the East of England region. In 2005, Tata Consultancy Services established a life assurance and pensions outsourcing centre of excellence in Peterborough as part of a 12-year, £486 million deal; and acquired Corby-based steel giant, Corus for £6.7bn in 2007. The company's chemicals division is also involved in a JV with Peterborough based Total Produce to develop a state-of-the-art distribution operation in India.

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