Axial's Ford contract goes to partnership
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• A joint venture between AutoLogic and American group Allied Holdings has taken on the Ford logistics services contract following the termination of Ford's deal with Tibbet & Britten subsidiary Axial.
The Ford contract was worth around £60m to Axial, representing 20% of its revenue—but the deal was cited as a major factor in Axial's £1m operating loss last year.
Through the integration of Sil000k Express and Toleman Axial's relationship with Ford stretches back 73 years, but chairman John Harvey says accumulated losses exceeding £7rn since 1995 could no longer be sustained. "We found it impossible to agree acceptable contract terms which would have generated us a profit," he says.
Neither Ford nor Axial will discuss the losses, but it is understood that Ford's move to single site sourcing was a factor.
According to Harvey most of the 700 people employed on the contract will be transferred to the joint venture, which will be known as Auto-Car Logistics.