UK car industry increases government pressure

Manufacturing News, Source : TheManufacturer.com
Published : 23 Oct 2002 9:59

Ford, the world’s second largest automotive group, has increased pressure on the government to introduce a single currency.

Further delays of the euro may force Ford to stop investing in the UK car industry, according to its chief operating officer Nick Scheele. Heavy investment from the company was made on the assumption that Britain would join the euro in 2004. Kevin Howe, MG Rover’s chief executive has backed Ford stating that their European sales have slumped because of the strong pound.

Peugeot is also stepping up its government pressure for funding to finance a £250m upgrade of its Ryton plant near Coventry. The plant currently manufactures 200,000 cars each year but with the introduction of a fourth shift next month the assembly line will be operating 158 hours a week with the creation of 700 new jobs.

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