No hopeforMaggiefactory
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MAGIRUS-DEUTZ faces further closures, and there is now no hope of saving the last 1,800 jobs at the bus plant at Mainz after a decision was taken to stop production earlier this year. Our Brussels correspondent reports.
Talks in Switzerland with a possible buyer, backed by Arab oil money, have been abandoned.
A stumbling block was the commitment for the new owner to take over responsibility for pensions and other social security payments. Production, which once totalled 300 buses per year, is now running out.
A member of the firm's supervisory board told CM: "The big problem was the cut throat competition to sell public service buses to local authorities. We were losing as much as £14,000 on every bus we sold".
Magirus-Deutz's lorry plant at Ulm has also been hit by the world crisis in vehicle sales. Talks are now being held with unions over putting half the 10,000-strong Ulm workforce on short time.
A spokesman for IVECO, Magirus's parent, was unable to comment on the closures this week.