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Hundreds of jobs at risk over contract doubts

Mar 14 2010 Sunday Sun

HUNDREDS of jobs are in jeopardy after reports that BAE Systems has lost a £1bn bid to create the next generation of Army vehicles, the Sunday Sun can reveal.

Around 650 jobs at the company’s Scotswood Road site in Newcastle now hang in the balance after it emerged its rival General Dynamics has won the deal to construct a fleet of “Scout” armoured vehicles.

Defence minister Quentin Davies is expected to name the US company as the preferred bidder in the deal, which will see it build an initial 750 vehicles.

There will also be a delay of at least a year for a planned refit of the Warrior armoured vehicle, which BAE had also hoped to secure.

The news will come as a further blow to the region, which is already reeling following the mothballing of Teesside’s Corus plant, threatening 1,600 jobs.

An insider at BAE Systems says the manufacturer is relying on the contract to safeguard jobs at a time when many are already in danger.

In January, the company announced it was to axe 217 jobs at the Scotswood site, but that it would be able to save 105 if it won the Scout contract.