US car giant, Ford, has warned that a no-deal Brexit will have a catastrophic impact on the motoring industry and has reportedly told the prime minister that it is making plans to shift production away from the UK.

Ford currently employs 13,000 in the UK as plants in South Wales and Essex and has previously made noises about the consequences of the UK leaving the European Union without a deal. Some reports suggest that a ‘hard Brexit’ could cost Ford in the region of £622m in 2019, with the additional tariffs making it difficult to export vehicles outside of UK shores.

On Wednesday The Times newspaper reported that in a private conversation with Theresa May and other business leaders, Ford had indicated that it was making arrangements to produce cars away from Bridgend and Dagenham.

Pushed for clarity on the issue, Ford refused to confirm or deny the story, but did say: "We have long urged the UK government and Parliament to work together to avoid the country leaving the EU on a no-deal, hard Brexit basis on 29 March.

"Such a situation would be catastrophic for the UK auto industry and Ford's manufacturing operations in the country.

"We will take whatever action is necessary to preserve the competitiveness of our European business."

Ford has already confirmed 1,000 jobs will go at the Bridgend plant over the next two years as part of a restructuring plan, whilst the company’s European boss, Steven Armstrong, has said ‘nothing is off the table’ in terms of a reaction to the wrong Brexit decision.

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