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Poor sales lead FORD to extend short weeks

Published on: Mar 4, 2016

Transcripts - Poor sales lead FORD to extend short weeks

  • 1. BTS COMPTABILITÉ ET GESTION SUJET N° 8 SESSION 1999 Poor sales lead FORD to extend short weeks Ford is planning to extend four-day week working at its Dagenham plant to the end of February because of continued weakness in export market for the Fiesta. The move comes as Rover confirms production cuts of around 8pc and Rolls Royce reduces output1 to match lower demand. Industry leaders have warned that domestic sales this year are likely to be more than 8pc down on last year’s level but manufacturers believe production will be cushioned2 by export prospects. Ford has been suffering from depressed demand for the Fiesta in overseas markets since the autumn and with no relief3 in sight the company is considering the continued suspension of the Thursday night and Friday day shifts at Dagenham to the end of February. A spokesman said: “Nothing has been decided. The position is still under review” Ford has been reducing Fiesta production by around 1,200 a week since October but under the terms of union agreements has been continuing to pay the 4,400 assembly line workers affected by the slowdown. Rover expects volume car and Land Rover production this year will be around 8pc lower. The loss of the Metro coupled with the planned autumn facelift 4 of the 200 and 400 range is expected to reduce output to around 450,000. The BMW-owned company denied it was being troubled with a delayed launch of the Rover 75 saloon or that production schedules had been cut. “Our plans involve building 50,000 of the new range this year and we are still planning this,” said a spokesman. The Oxford-built model, one of the main hopes for the revival of the marque, is due to go on sale in March after the announcement of prices in February. Rolls-Royce has been making use of new flexible working arrangements which involve sending employees home on full pay when demand is low and making it up without extra payment when sales pick up. By Roland Gribben. THE DAILY TELEGRAPH, Tuesday, January 12, 1999. 1 output = production 2 to cushion = to alleviate, to protect 3 relief = soulagement 4 facelift = restylage

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