The closure of Ford's flagship engine plant in Bridgend, south Wales, is expected to be confirmed later today, in the latest blow to the UK's automotive sector.
Following the announcement that Japanese car making Honda is closing its Swindon factory by 2021 with the loss of 3,500 jobs and Indian-owned JLR announcing thousands of jobs losses, the closure of the Bridgend plant will impact 1,700 direct jobs and effect thousands more in the supply chain.
A statement will be made later by Ford.
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The factory has been under pressure for a number of years, with falling demand for the two engines it makes and lower projected need for the Dragon engine it is scheduled to start making this year.
Brexit, tariffs, diesel and electric cars are just some of the reasons other car makers have said they are closing plants.
Nissan had said that uncertainty about Brexit wasn’t helping them plan for the future, and chose to build the next X-Trail model in Japan, rather than in Sunderland.
However, Honda said its Swindon closure wasn’t about Brexit, and business secretary Greg Clark said it was “a commercial decision” for the company.
When Jaguar Land Rover cut 4,500 jobs, they said it was a slowing Chinese market responsible.
A new trade deal between Japan and the EU meant tariffs on cars exported from Japan to Europe reduced to zero over the next 10 years.
Closer to home, here in the UK diesel sales are falling and Honda had said the decision to close its Swindon manufacturing plant was down to changes in the car industry and the need to make more electric and hybrid vehicles.
While electric cars are on the up, they are still not a widespread replacement for petrol or diesel cars.
In what would only be a small crumb of comfort, the Ford site is still awaiting a decision on whether it will be chosen as the location for a new off road vehicle in an investment that could provide 500 new jobs.
Bridgend is up against Portugal for a project from Ineos Automotive with its new 4 x4 vehicle. This could see Ineos taking a engine line at the plant and see Ford staff transferring over.
When Jaguar Land Rover announced it was ceasing production of its original Land Rover Defender in 2016, Projekt Grenadier was launched by Ineos to fill what they saw as a lucrative gap in the marketplace.
However, it unlikely with the continuing uncertainty over Brexit, that Wales would be able to secure the entire investment, with the best case scenario being a split operation with Portugal.
