Ford and Visteon UK Ltd

Mike Freer Excerpts

Thursday 12th December 2013 Commons Chamber

[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.

[Mike Freer (Finchley and Golders Green) (Con)]

I congratulate colleagues on securing this debate, and it is sad that we have to repeat the same arguments from last year. Does my hon. Friend remember reading the Detroit Free Press in November 2012, which I am sure is a common read in his office? Tim Leuliette was asked:

“Did Visteon have a chance when it was spun-off?”

He said:

“No. The labour cost issues and the burden and the overhead was so out of line with reality that it was almost comical. It just wasn’t going to work”.

Does my hon. Friend agree that Visteon was simply set up to fail?

[Stephen Metcalfe]

With great sadness I must agree with my hon. Friend. When the chief executive of an entity the size of Visteon says that he could never work out how it was going to succeed, we can draw the conclusion that it was set up to fail. Someone somewhere must have known that the cost base was too high, and that Visteon did not have a bright future when it was spun off in 2000.