700 jobs will go in Ford plant closing

Press, 1 February 1986, Page 1

700 jobs will go in Ford plant closing

PA Wellington Ford New Zealand yesterday announced the closing in mid-1988 of its Lower Hutt vehicle assembly plant.

The closing was part of a modernisation programme to be introduced over three years, the company said. The vehicle assembly plant in Auckland would be expanded and the head office relocated to Auckland.

The company said employees in Lower Hutt and Auckland were told yesterday of the modernisation programme which would cost $45 million. It represented one of the largest motor Industry investments made in New Zealand.

“The $45 million investment is a clear commitment to long-term motor vehicle assembly in New, Zealand,” said the managing director of Ford New Zealand, Mr Bill Hartigan. “The company is determined to be a long-term leader of this industry, and the most responsible way to ensure this is to improve further the company's competitive position,” he said. The company believed it must consolidate all of its work in one locality to justify the investment in more advanced assembly facilities.

Mr Hartigan said the company had made the decision to close the Lower Hutt assembly plant, which employs 700 people, after comprehensive and detailed study. The has been assembling cars at Lower Hutt for. nearly 50 years. FOrd could not guarantee i& long4erm'future as an assembler in New Zealand while it was burdened with the competitive disadvantages of two plants. This added significantly to the company’s cost structure at a time when there was increasing competition from overseas assembled cars, he said.

The closing of the

Lower Hutt plant would begin progressively from the end of 1987. It was estimated it be complete by mid-1988. Mr Hartigan said the expansion of the company’s assembly plant in Auckland, for which preliminary engineering work would begin soon, was expected to provide jobs in Auckland for about 300 people. A special employment location section would be established by the company at Lower Hutt to seek alternative employment and training opportunities for those employees affected by the closing.

“The company will of course fully meet its obligations for 'redundancy payments to the people involved,” Mr Hartigan said.

“Ford New Zealand intends to make every effort to find alternative employment for its Lower Hutt people. This is one of the reasons the company has given two years notice of its intention to close its Lower Hutt facilities." This notice would not only enable the new employment location section to institute its programmes. but it would enable: employees to plan their futures in an orderly manner. 15 Models assembled at Lower Hutt were Ford Telstar, Ford Sierra, Ford Econovan, Ford Trader and Ford N Series. From the end of 1987 the assembly of these models would be moved progressively to Auckland, he said.