Ford creates 460 new jobs

THE starkly contrasting fortunes of Britain's last indigenous volume car maker and its rivals were revealed today as car giant Ford announced the creation of 460 new jobs in Dagenham, Essex.

The company is to build a £169m diesel engines plant at its factory with the help of a £4.5m Government grant. The news comes just two days after Rover revealed a massive price-cutting strategy to sell cars in the new year after a disastrous 12 months that has seen its share of the new car market slump to just 3%.

Ford, meanwhile, is powering ahead. Trade and Industry Secretary Patricia Hewitt described today's announcement as 'great news' for Ford workers and a huge boost for Dagenham.

'It shows the Government's firm commitment to high-value automotive manufacturing and we have worked hard, along with Ford and the London Development Agency, to make it a reality. Today's announcement helps maintain the UK position as a global centre of automotive manufacturing excellence,' she added.

Ford of Britain chairman Roger Putnam said the investment will transform Dagenham into a state-of-the-art facility. Ford has invested more than £550m at Dagenham since 2003.

The latest investment follows a decision by Ford and Peugeot Citroen to expand capacity for high-technology less-polluting diesel engines as part of an agreement between the two companies. Ford said the agreement had been so successful that demand for engines will soon outstrip the existing supply base.

Under the new plan, 1.4 and 1.6 litre diesel engine production will be added to the Dagenham engine plant from 2007. New production lines will be capable of turning out 400,000 engines a year.