AUTO NEWS – Ford prepares to drag UK manufacturing after Brexit


Ford prepares to drag UK manufacturing after Brexit

Ford is getting ready to maneuver manufacturing out of the UK post-Brexit, it has been reported.

The American producer, which employs 13,000 individuals within the UK, instructed Prime Minister Theresa Could that it’s getting ready different websites overseas throughout a personal cellphone name with enterprise leaders, based on the Occasions.

• Ford to chop as much as 400 jobs at Bridgend manufacturing unit

Theresa Could reportedly used the cellphone name to verify studies that the Authorities is getting ready a package deal of monetary assist for enterprise affected by a no deal Brexit, however didn’t develop into additional element.

Ford has neither confirmed nor denied particulars of the phone name, however a spokesperson was removed from optimistic of their evaluation of the state of affairs, saying the corporate would “take no matter motion is critical to protect the competitiveness of our European enterprise.”

Ford added {that a} no-deal Brexit could be “catastrophic for the UK auto business and Ford’s manufacturing operations within the nation”, and that it had lengthy “ lengthy urged the UK Authorities and Parliament to work collectively to keep away from the nation leaving the EU on a no-deal, laborious Brexit foundation on March 29.”

The corporate not too long ago introduced a collection of cost-saving measures that can see hundreds of jobs misplaced throughout Europe as a part of an £11bn international cost-saving plan. Ford misplaced £192m in Europe within the third quarter of this monetary yr.

This newest information follows final week’s announcement that Nissan has cancelled plans to maneuver manufacturing of its X-Path SUV from Japan to Sunderland, regardless of having obtained assurances from the British Authorities 5 months after the EU referendum that no extra tariffs or diplomatic crimson tape could be positioned upon it because of the depart vote.

Ford might lose £613m this yr because of laborious Brexit

Ford has predicted it might lose as much as $800 million – equal to £613 million – because of a tough, no-deal Brexit.

Executives on the American producer concern the mixture of World Commerce Organisation (WTO) tariffs and the weakening pound might severely injury earnings within the first 9 months following a no deal Brexit.

• Ford to chop ‘hundreds’ of European jobs, eyes up alliance with VW

Ford has beforehand issued stark warnings about how its European operations may very well be affected by Brexit, and different producers have echoed the identical sentiment. Jaguar Land Rover, which can be going through difficulties on account of a downturn in gross sales of diesel vehicles, beforehand stated a tough Brexit might price it £1.2 billion a yr. Ford has round 13,000 workers within the UK, equating to a few quarter of its 54,000 European employees.

The enterprise’ executives instructed analysts on Wednesday that the total extent of any job losses within the UK and the EU are unlikely to change into clear till later within the yr.

The £613m determine is broadly according to a declare made by Ford’s European chief Steven Armstrong over a yr in the past, when he remarked a no-deal Brexit might price the corporate round £767m within the first yr after the UK leaves the EU.

• Toyota boss warns no-deal Brexit ought to be “prevented in any respect prices”

Stories point out Ford was ready to reveal the £613m estimated determine throughout an earnings name with Wall Avenue analysts on Wednesday, however didn’t accomplish that as a result of no Brexit-related questions had been raised.

A spokesperson for Ford instructed Auto Categorical: “Our planning assumptions for Brexit embrace a negotiated exit because the almost definitely final result, with a transition interval throughout 2019 and 2020 if the withdrawal package deal is authorised by UK Parliament.

• Brexit presents “no benefits” for UK carmakers, warn MPs

“Nevertheless, we recognise that the state of affairs is very unsure, and are monitoring occasions intently.

“Within the occasion of a no deal situation the ensuing border friction, deteriorating financial outlook, coupled with seemingly additional Sterling devaluation, and introduction of WTO tariffs would severely impression Ford’s operations within the UK and throughout Europe and will probably end in an $800 million headwind in 2019.”

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AUTO NEWS – Ford prepares to drag UK manufacturing after Brexit


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