Four-day week at Leyland Daf
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• Dutch truck maker Daf is bracing itself for "significant" losses in 1990, while in the UK Leyland Daf has announced plans to cut production at its van and truck plants in the wake of the collapse of the British CV market.
Three months ago, after declaring a first-half loss of 32.1m Dutch Gilders (0.'7 million), Oaf NV predicted that it still expected to make a small net profit for the whole year, "provided that there were no negative economic developments."
But now Daf says that there has been a marked deterioration in the market, partly as a consequence of the Middle East crisis. And the company "expects to make a significant loss in 1990."
In a bid to cut vehicle stock levels in the UK, Leyland Daf is ending the night shift at its Washwood Heath, Birmingham van plant with the loss of 300 jobs. The company is optimistic that the redundancies can be achieved voluntarily or through natural wastage. The cuts will reduce the weekly output by around 160 vehicles.
Leyland Daf is also putting some 600 workers (approximately half the workforce, amounting to one of its two assembly lines) at its Leyland truck plant, on a four-day week. They will also get an extra five days' holiday at Christmas. But communications director Martin Hayes says that the remaining assembly line will continue normal operation producing a variety of vehicles including those for the recently-awarded Army fourtonne truck contract.
Discussions with the unions regarding further possible reductions in the workforce at the LAP site as well as at Leyland Dafs Albion axle plant in Scotland are currently taking place. Closure of the Albion plant is not, however, in question says Hayes — not least as it has recently won extra new business.
According to Daf in Eindhoven, these measures, plus others taken in other markets "will lead to acceptable stock levels by the end of 1990".
With the notable exception of Germany, Daf reports that the overall demand for CVs continues to decline throughout most of Europe — although it has managed to increase its market share for trucks above 3.5 tonnes in the UK, France, Austria and Spain.