Ford issues latest motor industry Brexit warning

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Ford has warned that a £760 million decline in European revenues last year, much of it attributed to the weaker pound pushing down the value of earnings in the UK, could lead the company to take “whatever action is needed” to remain profitable. 

The Independent reports that Ford warned of the potentially drastic action amid rising fears of a no-deal Brexit, with ever more UK-based car makers fearing for their businesses with the threat of increased costs. 

Other manufacturers that have issued similar warnings include Jaguar Land Rover, parts supplier Unipart and BMW, which have all suggested that a no-deal Brexit could have severe consequences on their UK operations. 

In 2017, Ford’s earnings dropped by £760m in Europe, and the brand said £460 million of this was down to the falling value of the pound since the UK’s vote to leave the European Union. Ford has three facilities in the UK; transmissions are made in Halewood, Merseyside petrol engines are put together in Bridgend, Wales, and diesel engines are constructed in Dagenham, Essex.

“If I’m forced to go out because we don’t have the right deal, then we have to close plants here in the UK and it will be very, very sad. This is hypothetical, and I hope it’s an option we never have to go for,” said JLR boss Ralf Speth earlier this year. 

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Speaking to the Mail on Sunday, McLaren boss and former Ford manufacturing vice-president Mike Flewitt also expressed concerns about post-Brexit automotive logistics, saying: “How will we be able to import components? Export cars? Well, we don’t actually know how to trade with each other under those terms.

“These are genuine fears. The people I feel most sorry for are some of the car companies that came and invested in the UK through the 1980s and 1990s to make Britain their base for trading in Europe.

“If all of a sudden their trading terms change, that whole investment is almost called into question.”

Read more:

Jaguar Land Rover boss issues fresh hard Brexit warning

Brexit: EU single market is ‘critical’ to UK automotive sector

BMW UK boss: We will not close UK factories post-Brexit

Brexit: what it means for the British car industry

Ruperts Trooper

Ford?

Ford isn’t a UK car maker – it walked away from the UK some years ago.

I guess what they’re saying is that European car makers will have a tough time if/when the UK leaves the EU – tough, we need to take care of the UK, not the EU.

typos1

Ruperts Trooper wrote:

Ford isn’t a UK car maker – it walked away from the UK some years ago.

I guess what they’re saying is that European car makers will have a tough time if/when the UK leaves the EU – tough, we need to take care of the UK, not the EU.

Ford may not be a UK car maker, but its a major UK manufacturer.

“Taking care of the UK” means companies closing plants, people loosing jobs the economy shrinking and the pound falling, does it ?

XXXX just went POP.

jagdavey

After over 30 years of making huge profits in UK

Don’t you feel really sorry for Ford that after 30 years of making huge profits in the UK, they suddenly make a year’s loss in Europe because the Pound has loss fallen in value!!!!

As soon as the UK joined the EU back in ’75 Ford took advantage of gradually shifting all of it’s production out of the UK!!!!

Sounds to me they will use Brexit as an excuse to close down all what they have got left in Britain!!!!

 

Thekrankis

Only the UK is profitable for Ford

The rest of the EU is loss making.

 

This is not a Brexit issue, its an EU problem.

 

If Ford chooses to leave the EU I’m not sure there will be too many tears shed……

typos1

Thekrankis wrote:

The rest of the EU is loss making.

 

This is not a Brexit issue, its an EU problem.

 

If Ford chooses to leave the EU I’m not sure there will be too many tears shed……

I m sure the 1000s of people who loose their jobs will shed some tears, if if you couldnt give a toss about them.

XXXX just went POP.

renster

If only people had listened to the warnings…

It’s disappointing to see people here blaming the EU. This is not an EU problem. It’s a UK problem: a fundamental consequence of what a bad deal would do for the UK, that idiots brushed off as “Project Fear”.

The UK may be profitable for Ford, but that’s only through its easy access to the EU market. Ford will want to shut down the rest of their ops here in the UK if there’s a bad Brexit, because they are a business: the increased tariff and non-tariff barriers will destroy what’s left of our manufacturing base. Pretty sad.

ianp55

Ford’s View Of Brexit

Don’t think that Brexit will much difference to the company’s sales in the UK,after all the last Fiesta rolled down the production at Dagenham plus the Eastleigh factory which built the Transir closed a decade later. The only thing that Ford produce in Blighty are engines and Ford UK are purely a sales and service organization here. Ford sales have declined from their once dominant postion here to a fraction of that now,so I’d think that even a cliff edge Brexit wouldn’t affect the sales here that much, maybe Ford should take a look at their pricing structure rather than complain about the UK leaving the EU 

jagdavey

Closing Bridgend; Dagenham Tunten due to Brexit

Ford will use Brexit as an excuse to close Bridgend, Dagenham Dunton because they have’t got any powertrain alternative strategy, will probably get an EU grant to build powertrains in Romania (just like they got EU money to build Transits in Turkey that resulted in the closure of Southampton Genk).

The other option for them is to do what GM did sell up their operations in Europe.( let the VW group dominate in Europe)

Phil R

You can debate if Ford makes

You can debate if Ford makes cars here or whether they did the terrible sin for a company of making profits, but for 14,000 people losing their jobs, plus probably double that in the associated supply chain is what matters. 


All to regain sovereignty (where no one can actually name a law they want back), population growth (which as a percentage and looking at our ageing population is negligible), and of course fund our NHS (which will have no staff, drug supply issues and less money in general). 

Thekrankis

You woukd gave thought…

That Remoaners and Brexiteers would have learned to stop making silly predictions by now…..

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