Ford Motor Group has issued a stark warning ahead of the UK’s planned exit from the European Union in March claiming it could lose the equivalent of £613 million in revenues.
If Theresa May’s Government does not negotiate a planned exit from the EU it is expected that the nation would trade on World Trade Organisation tariffs, a worry that would add significant numbers on both import and exports from the continent. Crashing out of the EU could also hit the economy hard, which in turn would weaken the pound.
Speaking in the Auto Express, a Ford spokesman said that the company has planned for all outcomes and will be hoping that the negotiated Brexit will be the route the nation takes.
“Our planning assumptions for Brexit include a negotiated exit as the most likely outcome, with a transition period during 2019 and 2020 if the withdrawal package is approved by UK Parliament.
“However, we recognise that the situation is highly uncertain, and are monitoring events closely.
"In the event of a no deal scenario the resulting border friction, deteriorating economic outlook, coupled with likely further Sterling devaluation, and introduction of WTO tariffs would severely impact Ford’s operations in the UK and across Europe and could potentially result in an $800 million headwind in 2019.”
Ford are following on from Jaguar Land Rover and Toyota who have all echoed stark warnings. JLR recently announced a host of job cuts, and with almost a quarter of Ford’s European workforce based in the UK there are concerns that job losses may be the result.