Job fears as unions seek urgent Ford talks

Updated 23.26 Tue Jun 12 2007
Keywords: Union, Land Rover, Jaguar, Unite

Union leaders are seeking urgent talks with car giant Ford after the manufacturer revealed it intends to sell its Jaguar and Land Rover operations.

Ford spokesman John Gardiner said the company is working with financial advisers on the best options for its European luxury brands. He declined to name the advisers.

"We find it difficult to understand why Ford would want to sell a successful, growing and environmentally improving brand like Land Rover, and a marque like Jaguar, which is a significant player in the luxury market" - Dave Osborne

Sources familiar with the matter said Ford had hired investment banks - including Goldman Sachs, HSBC and Morgan Stanley - that are helping the automaker explore the sale of the two brands.

The company has briefed MPs on the sale and is expected to give more details later this week.

The Prime Minister's official spokesman said the Government is in touch with Ford over the plans.

The spokesman said: "We still believe that both Land Rover and Jaguar are highly successful companies and will have a highly successful future."

Ford bought Jaguar in 1989 for £1.6 billion and Land Rover in 2000 for £1.7 billion - the two manufacturers employ around 19,000 workers in the UK.

Dave Osborne, national officer of the Unite union, said: "We are very concerned to hear these reports and we are seeking an urgent meeting with Jaguar/Land Rover.

"We find it difficult to understand why Ford would want to sell a successful, growing and environmentally improving brand like Land Rover, and a marque like Jaguar, which is a significant player in the luxury market and one that Ford has invested heavily in.

"Our prime concern is the job security of our members."

Labour MP John McDonnell (Hayes & Harlington) has tabled a parliamentary motion against any possible sale to a private equity company.

Ford is believed to have given three investment banks a mandate to sell the two businesses as it steps up a group-wide restructuring process aimed at stemming record losses.

The company sold Aston Martin earlier this year and there has been increasing speculation about further sell-offs.

Jaguar employs around 10,000 workers in the UK at sites in Coventry, Birmingham and Liverpool. Land Rover has around 9,000 employees, mainly at Solihull in the West Midlands, Halewood, near Liverpool, and Gaydon in Warwickshire.

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