FORD PULLS PLUG
Ford set to axe 800 British jobs – blaming slow electric vehicle sales
Meanwhile, the boss of Lidl has warned that food prices will have to rise after Rachel Reeves’ Budget tax raid
FORD announced plans yesterday to axe 800 British jobs — just minutes before sending one of its bosses to crisis talks with the Government over electric car targets.
The car giant blamed weaker demand for electric vehicles for its decision to slash 4,000 jobs across Europe.
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The hefty redundancies will include 2,900 roles in Germany, with the UK cull falling on admin and support staff in Dunton, Daventry and Stratford.
Ford employs 6,500 in the UK but insiders said its manufacturing sites in Dagenham and Halewood would be unaffected.
However, an executive said “further steps” might be required if problems were not addressed.
Ford said the job cuts were caused by lack of government support and incentives to encourage drivers to switch to electric vehicles.
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Chinese rivals, such as BYD, could also flood the market with cheap EVs.
Car makers face financial penalties if less than 28 per cent of its sales are electric by next year.
Ford chief financial officer John Lawler said: “What we lack in Europe and Germany is a clear policy to advance e- mobility, such as investments in charging infrastructure.”
Car makers including Ford, Volkswagen, BMW, Nissan, Jaguar Land Rover, Toyota and Vauxhall owner Stellantis had a round-table with ministers about the 2030 mandate for all new car sales to be electric to meet CO2 targets.
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Firms believe the aim is unrealistic and Stellantis has even warned about pulling out of UK production.
No10 said: “The UK’s automotive industry employs over 150,000 people and has a big role to play in our mission to grow the economy.
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“We’ve already backed the sector with over £300million to drive uptake of electric vehicles.”
It is understood the firms are lobbying the Government to include plug-in hybrids in the 2030 target.
Nissan’s Guillaume Cartier said current policies could undermine the case for making cars in the UK and the viability of thousands of jobs and billions of investment.
He added: “We need to see urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”
Budget sleighs shops
THE boss of Lidl has warned that food prices will have to rise after Rachel Reeves’ Budget tax raid.
Chief executive Ryan McDonnell said the discount supermarket chain was facing “tens of millions of pounds” in extra costs after the Chancellor hiked employers’ National Insurance contributions.
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Mr McDonnell told The Sun: “We are talking about £7billion for the whole industry. For us it will be tens of millions. With all that cost there will be inflationary pressure.”
His comments came as Lidl toasted its status as the fastest-growing supermarket, with revenue rising 16.9 per cent to almost £11billion.
It has also swung back into the black with pre-tax profits of £43.5million and plans to open 18 new stores in months.
Merry Lidl Christmas
LIDL is gearing up for Christmas by launching novelty festive jumpers today, and selling a wider range of its panettone and chocolate treats.
Boss Ryan McDonnell said parents often shop in the retailer’s famous “middle aisle” for kids’ presents and he expects its wooden toys to be a big hit.
Lidl will also donate £125,000 to toy bank charities this Christmas.
£5M loan firms-up Summers
ANN SUMMERS’ family owners have thrown the loss-making sex toy and lingerie retailer a multi- million pound lifeline.
The adult chain has taken a £5million loan from Green Street Holdings, which is controlled by the Gold family, led by chairwoman Vanessa Gold.
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She was appointed to the role last year after the death of her sister, Ann Summers founder Jacqueline Gold.
The funding came as Ann Summers announced pre-tax losses of £3.8million in the year to July 1, 2023.
The firm also said yesterday it had made redundancies among its more than 1,000 employees.
It is understood up to 30 staff were hit, mainly in head office roles.
Chief exec Maria Hollins said: “We have ambitious plans for growth but have had to reduce costs by making a small number redundant. This was not a decision we took lightly.”
Bakers in Morr risk
ALMOST 400 jobs are at risk at Morrisons as it considers shutting its bakery business located in Wakefield.
It bought the Rathbones own-label factory from administration in 2005 — but it has continued to make losses.
The supermarket said it would try to find jobs for the 378 affected workers in other areas of the company.
The private-equity owned grocer said its 450 in-store Market Street bakeries were unaffected by the changes.
£14.5M E.On hit
ENERGY supplier E.On Next has been told to pay £14.5million in compensation to nearly 250,000 prepayment customers after billing errors.
They will receive an average £144 each after E.On failed to process final bills.
Regulator Ofgem called it unacceptable and said 100,000 of the “often vulnerable” customers were in credit, but unaware, as they didn’t receive a final bill.
E.On Next apologised and will also write off the debt of almost 150,000 who shut accounts between February 2021 and September 2023.
Cash isn't king
ONLY one in 12 people still use cash “all of the time”, a survey by Natwest has revealed.
However, more than three-quarters (76 per cent) of those who said they favour digital payments told pollsters they still carry cash for emergencies.
£295M 'PPI' plot
SANTANDER has put aside £295million for the potential fallout from the motor finance scandal.
The bank delayed its results last month after a court ruled that it was illegal for lenders to pay commission to car dealerships without informing drivers.
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The scandal has been compared to the £50billion PPI debacle, with Moody's analysts saying banks could be on the hook for £30billion.
Santander also plans to cut more than 1,400 jobs across the UK this year after income from mortgages slumped.
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