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Ford’s Dagenham engine output halved in a decade. Its plan is to build military vehicles instead

Output at Ford’s Dagenham plant has fallen from 90,000 engines a year to about half that. The company is bidding, with General Dynamics and Ricardo, to supply 9,000 vehicles to the British Army.

Ford’s Dagenham engine output halved in a decade. Its plan is to build military vehicles instead

It is green, bulging and intimidating — Ford's latest vehicle looks like a pick-up that has been through a Hulk transformation. Based on the Ranger, it can carry two tonnes and tow four, and is also carrying the hopes of the 2,000-strong workforce that still makes engines at Dagenham.

A plant running at half speed

Inside the factory, the three-litre diesel engines that will power it move down a production line whose output has fallen from 90,000 engines a year to about half that over the last decade.

Ford hopes a pivot toward military vehicles can help fill the void created by what its UK boss calls the most challenging environment since the invention of the motor car. Once mighty, the European car industry is looking puny, and is hoping that surging defence budgets as Europe re-arms will let it flex again.

Ford is in a joint venture with General Dynamics and Ricardo, bidding for a Ministry of Defence contract to supply 9,000 vehicles over the next five to seven years, replacing the Army's ageing Land Rover-based fleet. Lisa Brankin, chair of Ford UK, calls it a chance to show they can respond quickly to defence needs. The bid was reported by The Times and Business Matters; trade press has noted that Ineos is competing for the same work.

What it means in Bangladesh

The transferable idea here is not defence. It is what a manufacturer does when its core market shrinks and the machines, the site and the workforce remain.

Bangladesh is going to face this question, and sooner than the industry admits. The country's manufacturing base is overwhelmingly one product — garments — sold overwhelmingly to two markets, the EU and the US. The exposures are known and arriving together: the loss of least-developed-country trade preferences on graduation, buyers diversifying toward Vietnam and increasingly toward Africa, and rising automation in the parts of the process that automate well.

What Ford is attempting is capability redeployment — the recognition that its asset is not "making car engines" but metalworking, precision assembly, a trained workforce and a certified supply chain, which can be pointed at a different customer. That framing is available to Bangladeshi manufacturers and is mostly not being used.

The concrete version: a compliant garment factory's real assets are cutting and sewing capacity, quality systems, export documentation, and workers trained to a standard. Those assets also make medical textiles, protective equipment, technical and industrial fabrics, automotive interiors and furniture upholstery — categories with higher margins and, importantly, different buyers.

The warning inside the story is just as useful. Dagenham did not halve in a year; it halved over a decade, while remaining profitable enough not to force a decision. Diversification is cheapest exactly when it feels least necessary, which is why so little of it happens. The concentration risk this creates is the one we looked at in the fragility behind aircraft windows.

Source: BBC

Written by

Tech BD

Editorial team of Tech BD.