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• Car giant Ford is set to overhaul its UK

10th February 2000
Page 7
Page 7, 10th February 2000 — • Car giant Ford is set to overhaul its UK
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distribution network as part of a wide-ranging drive to cut costs.

The move follows a similar shake-up in Rover car plants which cost TNT a £5m-a-year contract.

Although Ford's parts depot in Daventry is run in-house, Exel Logistics runs a consolidation and delivery service for parts arriving from the Continent and Christian Salvesen delivers parts to dealers; car deliveries to dealers are handled by Brentwood-based Ansa Logistics, which took over the contract from Axial last May Ford's plans were disclosed by its European chairman Nick Scheele following a slump in profits. He warns that the UK is a prime target for action, particularly as the pound is so strong against the Euro.

A spokeswoman says: "It is a huge thing we are looking at in terms of restructuring. When full details are decided, then of course we would put them in the public domain. At the moment it is work in progress."

Ford has already announced a link-up with UPS in North America with the aim of reducing vehicle delivery times by up to 40%.

The company's UK parts depot in Daventry employs around 900 people, receives up to 80 artics a day and is Europe's biggest single-storey building. A spokesman for Exel Logistics says 150 people are employed at its dedicated parts depot in Landor Street, Birmingham, with another 50 people employed elsewhere.

"We have had a 40-year plus relationship with Ford which is very healthy and continues to grow," he adds. "We would not anticipate any problems."


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