Ford boss: ‘disastrous’ no-deal Brexit may affect carmaker’s UK plans
US company relies heavily on tax-free trading and no border checks inside EU
Ford has warned that a no-deal Brexit “would be pretty disastrous” for British industry and could force the US manufacturer to reconsider its operations in the UK.
The carmaker’s European chief, Steven Armstrong, said that tax-free trading and no border checks was vital for Ford’s speedy and “complicated” supply line, the Daily Mail reports. Should Britain fail to secure such a deal with the European Union, the firm would have to “think about what our future investment strategy for the UK would be”, he said.
“For Ford, a hard Brexit is a red line. It could severely damage the UK’s competitiveness and result in a significant threat to much of the auto industry, including our own UK manufacturing operations,” Armstrong added.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The car boss insists that a Brexit deal based on the current agreement between the European Union and Canada would not work for Ford.
Although such a deal would allow tariff-free trade, Armstrong told the BBC that “it would still involve border checks - and would upset the just-in-time delivery model used by the company in Europe”.
His warnings mark a dramatic U-turn on pledges made by Ford earlier in the year.
In April, the US carmaker reassured its 14,000 employees in the UK - including 3,000 at the Dagenham engine plant and 1,950 at a factory in Bridgend, Wales - that its operations would not move “whatever the outcome of Brexit talks”, The Guardian reports.
Other car manufacturers with factories in the UK, including Jaguar Land Rover and Toyota, have also expressed concerns about a potential no-deal Brexit.
Yesterday Nissan announced that it would suspend pay talks with its employees until the terms of Brexit are “clearer”, The Independent notes.
The Japanese firm, which built almost a third of the UK’s total 1.67 million new cars last year, said the staff negotiations “will commence in 2019 when we have better clarity on the future business outlook”.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
GOP's Mace seeks federal anti-trans bathroom ban
Speed Read Rep. Nancy Mace of South Carolina has introduced legislation to ban transgender people from using federal facilities
By Rafi Schwartz, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
DOJ seeks breakup of Google, Chrome
Speed Read The Justice Department aims to force Google to sell off Chrome and make other changes to rectify its illegal search monopoly
By Peter Weber, The Week US Published
-
Nissan X-Trail review: what the car critics say
feature Nissan’s new electric seven-seater may not ‘set the world on fire’ but it has been ‘carefully crafted’
By The Week Staff Published
-
Sport on TV guide: Christmas 2022 and New Year listings
Speed Read Enjoy a feast of sporting action with football, darts, rugby union, racing, NFL and NBA
By Mike Starling Published
-
Nissan Ariya review: what the car critics say
feature Nissan’s new all-electric crossover pulls away quickly and the ride feels soft, but suspension isn’t great
By The Week Staff Published
-
Ford Fiesta 2022 review: what the car critics say
feature The Fiesta remains the ‘best car in its class to drive’ – by some margin
By The Week Staff Published
-
House of the Dragon: what to expect from the Game of Thrones prequel
Speed Read Ten-part series, set 200 years before GoT, will show the incestuous decline of Targaryen
By Chas Newkey-Burden Published
-
Ford Focus review: after 25 years it still impresses
feature Fun and engaging to drive, the Focus has been treated to a mid-life update
By The Week Staff Published
-
One in 20 young Americans identify as trans or non-binary
Speed Read New research suggests that 44% of US adults know someone who is transgender
By The Week Staff Published
-
The Turner Prize 2022: a ‘vintage’ shortlist?
Speed Read All four artists look towards ‘growth, revival and reinvention’ in their work
By The Week Staff Last updated