Fodens takeover: 1,600 jobs lost

18th October 1980, Page 5

18th October 1980

Page 5

Page 5, 18th October 1980 — Fodens takeover: 1,600 jobs lost

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FODENS felt the sharp edge of an American axe this week within hours of new owner Paccar's takeover deal going through. Only 350 of the 1,950 employees are being kept on meantime, and all of the Foden family have disappeared from the Sandbach payroll.

The factory is owned now by the Sandbach Engineering Company —a subsidiary of Seattlebased Paccar — and represents the best assets which could be salvaged from Fodens for a still undisclosed sum.

New managing director Hank Kiezler told CM: "We looked at Fodens over the last two to three months, and reached the conclusion that the company was not viable in its present structure.

"We have purchased most of the assets and are incorporating the best of these to make a going concern of Sandbach Engineering."

Mr Kiezler confirmed that none of the Foden family was joining the new company, and Paccar senior vice-president Bill Gross added that managing director Patrick Twemlowe and general manager (marketing} Richard Phillips have also gone.

Mr Kiezler said that there will be an "absolute minimum" of American management at the new company. "There will only be enough to provide the flavour and culture of the Paccar company."

Contracts of employment were being offered to the 350 employees which, the company believes, it needs to keep ticking over under present depressed conditions. Mr Gross intimated that executive director (sales) Bill Johnson and general sales manager Brian Lomas are staying.

There seems little likelihood of the London office being kept open, according to Mr Kiezler.

He conceded that there is "not much market for heavy duty lorries" at present, but said that the immediate priority is to sell Foden lorries in the United Kingdom. "The Foden product will remain at Sandbach. It fits well with our marketing strategy," he said.

Mr Gross said Paccar is "not averse" to making winching and mining gear at Sandbach.

He added that Fodens will be exported through Paccar International, which also handles the group's Kenworth and Peterbilt products, and he indicated that the present strength of the pound will make it difficult for the British model to outsell its American stablemates.

The new owners are keeping "as many dealerships as are required", according to Mr Gross, who added that there will be no multi-franchises for Kenworth, Peterbilt and Foden vehicles.

Sandbach Engineering will not be listed on the stock exchange, as Paccar is not listed on Wall Street.

Trades union reaction to the cut in the labour force has been philosophical. A Crewe area official of the Amalgamated Union of Engineering Workers told CM: "Our only hope is that the market will pick up. We can only wish the new company every success for the future."