F&I Management & Training

The government has been warned that tens of thousands of car workers' jobs could be lost unless it gives more help to the motor industry. Union leaders told ministers that although a £2.3bn loan guarantee package was a welcome start, more needed to be done. Tony Woodley, joint leader of Unite, said immediate financial support was needed to keep workers in jobs. Business Secretary Lord Mandelson hosted a summit in central London. Three-day week Car sales are falling amid a worsening economic climate, with unions warning of a jobs "catastrophe" if the measures do not have an impact soon. Several plants are on extended shutdowns, with firms including Honda, Nissan and Jaguar Land Rover among those affected. Engineering group GKN, which supplies parts to car makers including Land Rover and Ford, announced on Wednesday that it had cut 242 UK jobs since October and may have to shed more. Luxury sports car firm Aston Martin became the latest manufacturer has also cut production, with workers at its factory at Gaydon, Warwickshire, starting a three-day week. The government announced on Tuesday that it would offer car makers loans of up to £1.3bn from the European Investment Bank and guarantees of support of up to a further £1bn for lending. Mr Woodley said as he left the meeting, at the Department for Business, Enterprise and Regulatory Reform, that tens of thousands of jobs were now at risk because of the "collapse" in car sales. He pressed Lord Mandelson to offer immediate financial support and said more should be done to help access credit to encourage car sales. 'More to do' Mr Woodley said: "These are the big issues now. The government has listened intently to what we said. "We have made it clear that yesterday's announcement was a good start but it will not in itself be quick enough to offset potentially tens of thousands of job losses. We need an immediate cash injection. "The message is 'well done - but there is much more to do'." Business Minister Pat McFadden said: "We understand the importance of the car industry and we want to do everything we can to help. "We also have to remember the importance of the supply companies which have factories around the country." Tom Purves, chief executive of BMW, described the meeting as "very constructive", adding: "We are all working in the same direction. "We have seen an unprecedented drop in demand and the government understands that." Asked about the government package, he replied: "No-one can say whether it's enough or not enough. "The conversations we had about taking elements of the package on over the next two weeks has been very beneficial. "I agree we need to take action quickly - the government understands that."

DATED: 29.01.09

FEED: AW