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BMW to cut 850 jobs at UK Mini plant
Published in Saudi Press Agency on 16 - 02 - 2009


German car manufacturer BMW AG is
shedding around 850 jobs at its Mini plant in Oxford, central
England, as it cuts back production in the wake of a 35 percent
slump in sales, according to Reuters.
The company, which produced 235,000 cars at the plant last
year -- its only Mini factory worldwide -- said in a statement
it would now be operating five days a week instead of seven.
"While Mini has been weathering the economic downturn, it is
not immune from the challenges of the current situation," the
company said in a statement on Monday.
Sales of the Mini, made famous in the 1969 Michael Caine
movie The Italian Job, slumped 34.5 percent in January to just
over 10,100 worldwide, according to data supplied by the
company.
The news brings the total number of announced job cuts by
Britain's struggling car industry close to 4,000 over just a few
months.
"Clearly this is very disappointing news. the government is
doing and will do everything it can in order to help those
affected," a spokesman for Prime Minister Gordon Brown said.
Trade union Unite described the production cuts as
scandalous and criticised BMW for sacking agency workers who
cannot claim redundancy pay.
"It is tough enough for workers in those car companies who
have seen their market collapse in recent months, but BMW makes
a top-selling product in the Mini and owed it to their staff to
treat them better," said Unite Joint General Secretary Tony
Woodley in a statement.
The production cut follows a severe downturn in car sales
which has hurt manufacturers across the globe.
In the UK, major car makers including Nissan, Ford, Jaguar
Land Rover and Aston Martin have announced over 3,000 job cuts
in recent months..
Britain said last month it would guarantee up to 2.3 billion
pounds ($3.3 billion) of loans to help keep the car industry
afloat, a deal welcomed cautiously by industry bodies but
criticised by trade unions for not going far enough.
The Opposition Conservatives said the Mini job cuts showed
that the move was ineffectual.
"This is another major blow to the car industry and shows
that Gordon Brown's policies simply aren't working. We need to
get credit flowing through to business," Shadow Work and
Pensions Secretary Theresa May said in a statement.
Britain's car industry is largely foreign owned, but still
employs more than 800,000 workers.


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