Ford goes Full Austerity

Today’s headline – Ford – is neither a triumph nor failure.

This time of year, economists and analysts trawl through company reports, hawkishly eyeing up the losers and winners from the past year, but today’s headline – Ford – is neither a triumph nor failure. The US car giant’s better-than-expected profits in North America, with revenues up 13 per cent, are buttressed against a 21 per cent decline in Europe.

However, the US car giant needs to be more worried about its performance across the water. Ford’s sales on the continent have plummeted to levels last seen in 1995 and what is worrying is that Ford’s executives aren’t worried. The company today released the bland comment citing that, “The business environment remains uncertain, and Ford will continue to monitor the situation in Europe and take further action as necessary”.

Such a statement, void of commitment, will do little to calm the company’s investors, let alone its European plant workers. Factory redundancies before Christmas caused riots in Genk, Belgium. In the UK job losses will also result out of plant closures in Southampton and Dagenham, East London.

So why is Ford not overly concerned of its continental money well? In October it rolled out its “European Transformation Plan”. This plan writes off afore mentioned factory closures as “cost efficiency actions”. It also forecast today’s headline European losses as the company consolidates assembly plants, introduces a new cars and focuses on increasing its brand and cutting costs.

Overall, it appears that Ford has implemented a policy akin to that of our Coalition Government. Austerity is the key word and plans to be for the next half decade for Ford’s European operations. Poor growth results will be ignored as unfortunate consequences of a larger plan as Ford, held up by US profits, will continue to cut expenditure in Europe.

While it comes as no surprise that Europe has been a stagnant market for cars since 2007, the UK has actually bucked that trend with sales hitting a four year high. And our most popular car – the Ford Focus.

In the past, Ford has often provoked strong reactions. Photograph: Getty Images

Oliver Williams is an analyst at WealthInsight and writes for VRL Financial News

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I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.