Ford closes 102 year old UK plant in European restructuring

US carmaker Ford Motor plans to shut its UK Transit van plant in Southampton, and  a panel-stamping operation in Dagenham by mid 2013, 102 years after taking up manufacture of the Model T in Manchester.

Though the company says it would continue to produce and design engines in the UK, the Unite trade union described the shutdowns as "disgraceful".

Ford becomes the latest mass-market automotive business to rejig its European operations as carmakers are trying to scale down capacity amid falling sales, saddled as they are with too many plants and too little demand.

On Wednesday, Ford also announced plans to end production at a major plant in Genk, Belgium, by the end of 2014, as a consultation process is under way with employee representatives.

The plan would help to address manufacturing overcapacity stemming from a more than 20-per cent drop in total industry vehicle demand in Western Europe since 2007. New vehicle sales in the region have reached a nearly 20-year low this year and are expected to remain flat or fall further next year.

Though Britain is the fourth largest market for Transits, the vehicle would now be imported into the UK from Turkey. According to Unite's general secretary, Len McCluskey, thousands more jobs could be on the block as closures impact Ford's UK supply chain.