BMW to cut 850 jobs at Mini plant

[Joanne98]

LONDON (Reuters) - German car manufacturer BMW is shedding around 850 jobs at its Mini plant in Oxford as it cuts back production in the wake of a 35 percent slump in sales.

The company, which produced 235,000 cars at the plant last year -- its only Mini factory worldwide -- said in a statement it would now be operating five days a week instead of seven.

"While Mini has been weathering the economic downturn, it is not immune from the challenges of the current situation," the company said in a statement on Monday.

Sales of the Mini, made famous in the 1969 Michael Caine movie The Italian Job, slumped 34.5 percent in January to just over 10,100 worldwide, according to data supplied by the company.

The news brings the total number of announced job cuts by Britain's struggling car industry close to 4,000 over just a few months.

"Clearly this is very disappointing news. the government is doing and will do everything it can in order to help those affected," a spokesman for Prime Minister Gordon Brown said.

Trade union Unite described the production cuts as scandalous and criticised BMW for sacking agency workers who cannot claim redundancy pay.

"It is tough enough for workers in those car companies who have seen their market collapse in recent months, but BMW makes a top-selling product in the Mini and owed it to their staff to treat them better," said Unite Joint General Secretary Tony Woodley in a statement. Continued...
http://uk.reuters.com/article/topNews/idUKTRE51F1AB20090216