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An automotive Car Spare firm has announced it is cutting staff and shutting down plants across its global operations. GKN has 2,500 automotive staff in the UK with head quarters in Worcestershire and 2 plants in Birmingham and another in Telford, Shropshire. It is not yet clear how many of the automotive work force will be affected. The firm has said it is taking action to stop a predicted pretax profits plunge. Its 2500 strong UK aero space division is thought to be unaffected.
Difficult period
A spokesman for GKN said: "We are now finalising plans to reposition our businesses to deliver acceptable profitability and cash generation through this difficult period." He added car and light vehicle sales had dropped across the world, hitting its production schedules. GMB Union spokesman Keith Hodgkinson said the union had been aware for some time of the firm's precarious situation. "We have in place an agreement with the company that members who wish to opt to leave the company via voluntary redundancy are free to do so and over the last few quarters over 100 workers have taken up this option," he said. The union was seeking further information from the company, he added. The company employs 42,000 people worldwide.
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Car parts job cuts
Protests against job cuts at car parts firm Visteon spread when workers attempted to occupy more factories.
Scores of workers are staging protests in Basildon, Essex, and Enfield, north London.
The action follows an overnight sit-in at another factory in Belfast.
Staff are demanding action to save 560 jobs at three plants.
Around 200 staff face the axe at a plant in west Belfast and 100 of the workers stayed at the site throughout Tuesday night.
They claimed the company's former owner and main customer, Ford, had promised contracts which they now want to see honoured.
Union representatives asked workers to hold off on a threat to picket Ford showrooms until more information was available.
Visteon UK employed 173 staff at the Basildon plant, 227 in Enfield and 210 in Belfast.
The wider group has a 33,500-strong workforce and operations in 27 countries.
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Job fears as car parts firm runs into trouble
Around 600 workers at a car parts supplier faced an uncertain future today after the firm was put into administration less than a week after being taken over. Euro Car Parts (ECP) bought rival Sheffield-based LSUK, which has 53 branches nationwide, last Wednesday. But ECP said it had been forced to place the entire business into the hands of administrators today after failing to secure investment support. The firm said: "Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming. "After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with effect." Lead administrators Tenon Recovery is in contact with several interested parties for LSUK, ECP added. As well as its branch network which supplies car parts and motoring services, LSUK operates subsidiaries M I Diesel Products, Protech Auto(UK) and Yeovil Rewind. LSUK staff turning up for work today reportedly found themselves locked out and a notice on the door telling them the company had ceased trading. The firm has about 110staff at its head office in Sheffield. Wembley based ECP, which is one of the UK's largest car parts suppliers, said it "deeply regrets what has happened, but to continue any longer with LSUK, as it currently stands, was unfortunately a futile operation". The group added that Tenon was planning to liaise with LSUK staff and "everything will be done to help and advise them with regard to the situation".