Ford and Visteon UK Ltd

Angela Watkinson Excerpts

Thursday 12th December 2013 Commons Chamber

[Stephen Metcalfe]

I could not agree more, and the issue transcends any legal debates that might be in a court of law. This is about trust and moral responsibility, and a fine company such as Ford has unfortunately blemished its character by not living up to the expectations of its former employees. That is the nub of the matter, and why I will address my remarks not so much to Ford in the UK, but perhaps to Ford globally. This is a global issue, and ultimately its resolution lies in Dearborn in the United States. I hope that Ford executives in the States are watching this debate, because it is they who are able to solve the issue.

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

I apologise for being unable to stay for the whole debate. Does my hon. Friend agree that restitution to the Visteon pensioners would be good not only for them but for the reputation of Ford?

[Stephen Metcalfe]

Absolutely. As I have said, this is a stain on Ford’s character and it does not live up to people’s expectations of a blue-chip brand that has been in this country for more than 100 years. That is why I have taken up the issue with such passion over the past three and a half years. Ford is damaging itself as well as its former employees. I want those executives in the States to watch this debate and listen loud and clear to the message that comes from this House. Indeed, I would be very disappointed if they were not watching—particularly Alan Mulally, the chief executive, and Bill Ford, the executive chairman—and I ask them to step up and sort the issue out once and for all.

I had hoped—as, no doubt, had many other Members—that our debate last year would have sparked some progress and provided the impetus needed to get justice done and see our constituents’ problems solved. Unfortunately, however, that was not the case and it is sad that we have had to come back a year later to rehearse many of the same arguments and ask Ford, again, to live up to its responsibilities. The Visteon pensioners find themselves in the same position; progress has been slow, and their fight for justice continues. Because of that, much of what I say today will sound similar to what I said last year, but it is worth repeating and I and colleagues will keep repeating the same message until Ford listens. To do anything else would be doing a great disservice to our constituents and to the Visteon pensioners, and I place on the record my total respect for the way they have conducted this campaign. Their dedication and commitment have been extraordinary, and that is one reason why I have been pleased to support their campaign.

For those who are new to this topic, I will provide a little history. Visteon was the global parts manufacturer of the Ford motor company, and in June 2000 it was spun off in an attempt to reduce supply chain costs. Visteon employees were actively advised by Ford to transfer their pensions to the new Visteon scheme, and they were promised that in transferring they would still

“receive the same benefits as at Ford, both now and in the future for all their pensionable service.”

They were told in no uncertain terms that their accrued pension rights would be protected, and they were given no new contracts of employment. On the contrary, the new entity continued to use Ford’s logo, it remained affiliated, and people used the same identity cards as previously and received loyalty awards on Ford paper—the list is endless. The two companies remained intertwined, even after the spin-off.

One thing that stands out after the spin-off is that Visteon UK never turned a profit after 2000—not in a single year. It ran up losses of approximately £800 million.