Swing plants and punishments: a study of a Ford closure decision

Abstract

This paper explores a major plant closure event based on a technical assessment of scale, plant numbers and projected global demand, in a repeated bargaining game context. It reconciles two apparently competing viewpoints: a) that the closure followed from weak global demand conditions; b) that it was a response to workplace tensions. The case study event is the withdrawal of Ford from UK based car assembly, and the resulting closure of the car assembly section of its Dagenham site. The study casts fresh light both on the nuanced circumstances of a particular closure event, and the logic more generally of industrial organisation and plant flexibilities within assembly plant networks. Some points of interest are also noted for ongoing debates about 'lean production'.

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