Swansea car parts jobs blow

Toyoda Gorsei announces plans to close Swansea plant

Author: Polly OliverPublished 28th Apr 2021
Last updated 28th Apr 2021

Hundreds of Welsh jobs are at risk after a car parts firm said it was planning to move production to the Czech Republic.

Toyoda Gosei, which employs 458 people at its plants in Gorseinon and Rotherham said it was part of it “reorganisation of its European Production Network”.

A statement from its Japan HQ said the firm was consulting with staff and that the move was partly down to a reduction in demand in the UK.

The statement said Toyoda Gosei had "informed its employees of a proposal to close the business in the United Kingdom (UK).

“TGUK will now enter a formal period of consultation with its employees regarding the proposed changes.

“The proposal is in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand.

“Due to these changes, Toyoda Gosei does not foresee growth of its business there and has decided to make this proposal.”

It follows the closure of the Ford plant in Bridgend last year with the loss of around a thousand jobs.

Dr Robert Bowen from Swansea University's School of Management says there are a number of reasons why automotive jobs in Wales are being lost:

"We've seen declining trends in car sales across the UK in recent years, particularly since 2017. A number of companies have left the UK to settle elsewhere, particularly in Europe where it may be cheaper to operate., and it may also be more convenient in terms of supply chains."