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June 05, 2019 02:04 PM

Ford to announce UK engine plant closure, report says

William James
Reuters
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    Ford Motor

    Ford added a new assembly line (shown) to produce a 1.5-liter three-cylinder engine at Bridgend last autumn.

    LONDON -- Ford Motor will close at UK-based engine manufacturing plant in Bridgend, Wales, ITV news reported, saying an announcement would be made on Thursday.

    The BBC reported that union leaders from the plant had been called to the company's headquarters for a meeting on Thursday.

    A source confirmed that officials from the Unite trade union would meet with Ford on Thursday and that the union leaders expect the automaker to announce the closure of the factory.

    Ford declined to comment on what it called speculation when contacted by Automotive News Europe.

    Ford makes about 1.3 million engines at two British locations, Bridgend and Dagenham, eastern England. It has previously warned it could face $1 billion in tariff costs in the event of a so-called hard Brexit.

    In January, Ford said it would cut thousands of jobs, look at plant closures and discontinue money-losing vehicle lines as part of a turnaround effort, and would start consultations with unions on the plans.

    The Unite union said at the time it expected nearly 1,000 job losses at Bridgend.

    While the company has announced 5,000 job cuts in Germany, its second-biggest European market, it has yet to make major decisions in Britain, which is its biggest.

    Britain's largely foreign-owned car industry has become increasingly concerned as the country descends into political crisis as it nears a deadline to exit the European Union.

    Ford's British-built engines, which are shipped for fitting in vehicles produced in Germany, Turkey, the United States and elsewhere, could face delays and extra costs from a no-deal Brexit.

    Nick Gibbs contributed to this report

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