THE SEVERE downturn in car sales has been blamed for the collapse of car parts supplier Visteon, which yesterday called in administrators with the potential loss of 200 jobs in its Belfast plant, the former Ford plant.
The US firm said the decision to place its UK arm in administration was made after “substantial losses” left it with no choice.
Workers at the plant staged a sit-in last night. Davy McMurray, regional organiser with the Unite trade union, called on Ford, as sole recipient of Visteon parts, to be generous. “Ford have a moral responsibility to these people and they are avoiding any responsibility. People are shattered and shocked.”
Meanwhile in the US, General Motors confirmed it is planning yet more job cuts, plant closures and a reduction in its dealer network in the US as part of efforts to come up with a viability plan that will meet the demands of the US administration.
On Monday, the US president rejected plans proposed by both GM and Chrysler and ousted GM’s chief executive Rick Wagoner. He then gave the firm 60 days to come up with another plan and gave Chrysler 30 days to sign off an alliance with Fiat.
Wagoner’s replacement, Fritz Henderson, said yesterday bankruptcy was still an option but the firm will become viable even if it has to seek court protection from debtors.
The extended deadline for GM’s viability plan also allows the German government further time to come up with a plan to save the firm’s Opel brand.
“We will make use of those 60 days to lay the foundation for a European Opel,” said German chancellor Angela Merkel to workers at Opel’s Russelsheim headquarters yesterday.
Opel management, the federal government, the four states with Opel plants and the US parent company “have to negotiate what a future business plan could look like”, she said.
Facing an election in September, a decision on whether the government should take a stake in Opel has been pushed back after the US government rejected GM’s plan to return to profit.
Both German coalition parties have made a pledge to save jobs, but Merkel’s Christian Democrats is believed to prefer a private investor to save Opel, while the Social Democrats want the state to take a stake.
The troubled state of the global car market is reflected in continuing falls in Irish sales. Figures due today are likely to show sales continue to be down over 65 per cent. The motor industry has called for the introduction of a new scrappage scheme and a change of VAT rules regarding used car sales.