In a further blow to the UK's motor industry, the plant is set to close in July of this year. Ford president John Fleming said that the factory was "uncompetitive". It is understood the Warwickshire plant is making losses of around £10m per year. Workers will be offered early retirement, voluntary redundancy or redeployment and there will be no compulsory lay-offs. Unions have accused the carmaker of “bribing” workers with “enhanced payments” to accept the closure of a plant which they claimed to be one of the most efficient in Europe.

Dave Osborne, T&G national secretary for the car industry, said: “The T&G does not accept this closure as either inevitable or non-negotiable and we'll do all we can to reverse the decision.” Osborne said it appeared the failure of Ford to hand work on the new Fiesta to the Leamington plant may have been a factor in the announcement. He also warned that Ford was looking to join the manufacturing march to the east and said that was another reason to make clear the union's opposition to the closure.