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BBC Wales's Justine Greene
"Union leaders condemned Krupp for acting too quickly in the wake of BMW's decision to sell Rover."
 real 28k

Thursday, 18 May, 2000, 10:15 GMT 11:15 UK
Car plant jobs threat lifted

Thyssen Krupp wait and see if the Phoenix bid is successful
The south west Wales car parts company Thyssen Krupp has temporarily withdrawn up to 99 redundancies.

The firm said it would now wait and see if the Phoenix bid for Rover is successful.


Ford
Rover is essential to Krupp's future

The Llanelli-based company employs 700 people making car panels.

It had said it had been badly hit by the troubles facing Rover with a drop in orders from Honda and the strength of the pound against the euro.

The company has already axed 98 jobs earlier this year and planned to make a further 99 redundancies next Monday.

Union leaders condemned Krupp for acting too quickly in the wake of BMW's decision to sell Rover.

But plant manager Andrew Selby said Rover is essential to Krupp's future and the factory is not yet in the clear.

But he says the Phoenix bid offers enough hope to warrant staving off further job cuts, allowing managers to make a fresh start at Llanelli.

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See also:

23 Mar 00 | Wales
Rover sell-off begins to bite
12 May 00 | Business
What's left of the UK car industry
07 May 00 | Business
Car firms face bleak future
12 May 00 | Business
Analysis: Europe's car industry
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