Alexander Dennis Limited (“ADL”), a subsidiary of NFI Group Inc. (“NFI”), one of the world’s largest independent bus brands, announced today that formal consultation on its past-announced restructuring has begun. programme in reaction to the significant decrease in the call for new buses and coaches in the UK due to the coronavirus pandemic.
The dramatic drop in demand for new buses and coaches due to the blockade, social distance and low number of passengers has left ADL with no other option yet to adjust its activities to the existing economic situation. Since the announcement on 27 July 2020 of a restructuring programme that threatens up to 650 jobs at all of the company’s facilities in the UK, ADL has continued its discussion with the UK and Scottish governments and other stakeholders. However, there is no immediate visibility into the stimulus reversal that is urgently needed for traders’ position orders, which requires formal consultation on the proposed changes.
ADL remains committed to working with its consumers and supporting the bus and coaching industry, which is facing an unprecedented crisis. The restructuring program is designed to adjust existing capacity by compromising the company’s ability to cope with increased demand in the future.
Following the delight of vertical integration with ADL’s comforts in North America and the Asia-Pacific region, where the chassis and frame structure at the same site demonstrated power gains in power, time, load and coordination, ADL intends to move chassis production to its Falkirk plant. . This will involve approximately two hundred workers in production aid and operations functions in Guildford. Non-production functions, the addition of engineering, testing and development, and the secondary market will continue to be founded on the Guildford site.
Paul Davies, president and CEO of ADL, said: “The Dennis logo is of great importance to the company, with its proud history and legacy of automotive innovation dating back to its inception in 1895. We will fight this legacy hard and continue to invest in our chassis line, which will continue to be designed in Guildford ».
The current lack of call for new buses and coaches will also mean the possible loss of 90 production jobs in Scarborough and a relief of 160 production posts in Falkirk, including with the chassis meeting transferred to this site.
As the company adjusts its overhead to the evolution of production activity, another two hundred positions will be allocated for purposes at all UK sites. ADL actively seeks voluntary layoffs to reduce the number of mandatory task cuts.
Paul Davies commented: “We don’t have a selection yet to put those complicated decisions into place to protect the company’s long-term fitness. We remain convinced that the scenario will pass over time, and we are in a good position to take advantage of it when that happens, but for now we will have to adapt to our new economic reality.
“We continue to call on UK and Scottish governments to urgently introduce a meaningful call to facilitate new buses and coaches, not only to avoid additional damage to the manufacture of buses and coaches in the UK that may threaten other production sites, but also to help rebuild more with a green recovery that provides cleaner air to our cities. The recently installed British fleet consists of approximately 50,000 buses and 21,000 coaches with an average age of almost 11 years. In addition, only 0.1% of the total fleet is electric, allowing for great relief in the environmental footprint. »
SOURCE: ADL
Record your email and we’ll keep you up to date on our latest articles, publications, webinars, and conferences. Unsubscribe at any time.
Let us perceive the long term of mobility.