Trailer maker Schmitz Cargobull admitted this week that the collapse of the market will force it to axe jobs, reduce capacity and cut working hours all over Europe.
It revealed that it has already ceased production at one of its two UK factories at Harelaw, near Newcastle. It is understood that instead of making reefers at one Harelaw factory and curtainsiders at the other, it is now making both at one factory.
The company,
which has until now refused to confirm or deny rumours of UK redundancies to Roadtransport.com, says it has been forced to institute the package of measures. The moves follow a drop in orders by 94% in the first quarter of 2009, with no prospect of an early recovery.
A statement from Schmitz Cargobull says that in an effort to make staff reductions, the board "has begun with discussions for a socially responsible reduction of employees".
Ulrich Schumer, chief executive of Schmitz, says: "Coming from a position with a solid financial basis, we now have to make these painful steps for a sustainable future."
Schmitz Cargobull in the UK is still declining to comment on job losses and closures, referring all queries to Schmitz's German head office.
The statement from Germany is gloomy. It says: "The trailer market has collapsed in the first quarter of 2009. The order level tends towards zero. All manufacturers are preparing themselves for a dramatic reduction
in the commercial vehicle market in Europe for 2009."
The group, which employs 4,000, says that "a clear point is that 350 temporary contracts will not be extended", although all 180 trainee contracts will be fulfilled.
Early retirement, part-time work and agreements to end contracts are all envisaged as part of the programme to cut jobs.
Board members and other senior staff have prepared an aid fund where they will contribute some of their wages to help colleagues experiencing difficulties after their working hours are cut.
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