Why a no-deal Brexit may cost Ford up to $1bn
US carmaker again warns of ‘catastrophic’ impact of a hard exit from the EU

Ford has estimated that it may lose $800m (£615m) this year alone if Britain were to leave the European Union without a deal.
Sources close to the company told Sky News that executives at the American carmaker have “privately calculated” that a hard, no-deal Brexit would have a significant impact on its profits in the first nine months after the divorce - due to take place on 29 March.
While most sources are claiming that Ford stands to lose up to $800m, a company insider told Reuters that the figure could be as high as $1bn (£760m).
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 weakening of the pound is being attributed to this potential loss in profits – and the impact of tariffs imposed by the World Trade Organization (WTO).
It’s not known how WTO tariffs would impact Ford, but the BBC says cars and vehicle parts “would be taxed at 10% every time they crossed the UK-EU border”.
With six manufacturing plants in the UK, along with several others scattered across France, Germany, Romania, Slovakia and Spain, Ford could find itself paying vast sums in trade levies to move vehicles and parts across the English Channel.
Reuters reports that Ford’s chief financial officer, Bob Shanks, said on Wednesday that the company has “started to work on the eventuality of there being a hard Brexit”.
Shanks, who warned last week that a no-deal divorce would be “catastrophic”, added that Ford is “actually incurring costs, doing things now to prepare for that, so there will be an impact. It’s a material impact.”
Meanwhile, a spokesperson for Ford told Auto Express that “border friction” and a “deteriorating economic outlook” would also impact the company in the event of a no-deal Brexit.
The remarks are the latest in a series of warnings from the carmaker about its operations in the UK after Brexit.
In October, Ford’s European chief, Steven Armstrong, claimed that tax-free trading and no border checks were vital for Ford’s speedy and “complicated” supply line, the Daily Mail reports.
The news also follows mass lay-offs at Jaguar Land Rover earlier this month, which was blamed partly on uncertainty over Brexit.
However, the British carmaker also admitted that a slowing economy in China and a downturn in diesel sales had played a part in it laying-off 4,500 staff.
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
-
Music reviews: Bon Iver, Valerie June, and The Waterboys
Feature "Sable, Fable," "Owls, Omens, and Oracles," "Life, Death, and Dennis Hopper"
By The Week US
-
Are bonds worth investing in?
the explainer They can diversify your portfolio and tend to be a safer investment than stocks
By Becca Stanek, The Week US
-
Elon has his 'Legion.' How will Republicans encourage other Americans to have babies?
Today's Big Question The pronatalist movement finds itself in power
By Joel Mathis, The Week US
-
Has Starmer put Britain back on the world stage?
Talking Point UK takes leading role in Europe on Ukraine and Starmer praised as credible 'bridge' with the US under Trump
By Harriet Marsden, The Week UK
-
Left on read: Labour's WhatsApp dilemma
Talking Point Andrew Gwynne has been sacked as health minister over messages posted in a Labour WhatsApp group
By Sorcha Bradley, The Week UK
-
New Year's Honours: why the controversy?
Today's Big Question London Mayor Sadiq Khan and England men's football manager Gareth Southgate have both received a knighthood despite debatable records
By Harriet Marsden, The Week UK
-
Will Starmer's Brexit reset work?
Today's Big Question PM will have to tread a fine line to keep Leavers on side as leaks suggest EU's 'tough red lines' in trade talks next year
By The Week UK
-
John Prescott: was he Labour's last link to the working class?
Today's Big Quesiton 'A total one-off': tributes have poured in for the former deputy PM and trade unionist
By Harriet Marsden, The Week UK
-
Last hopes for justice for UK's nuclear test veterans
Under the Radar Thousands of ex-service personnel say their lives have been blighted by aggressive cancers and genetic mutations
By Sorcha Bradley, The Week UK
-
Will Donald Trump wreck the Brexit deal?
Today's Big Question President-elect's victory could help UK's reset with the EU, but a free-trade agreement with the US to dodge his threatened tariffs could hinder it
By Harriet Marsden, The Week UK
-
What is the next Tory leader up against?
Today's Big Question Kemi Badenoch or Robert Jenrick will have to unify warring factions and win back disillusioned voters – without alienating the centre ground
By Harriet Marsden, The Week UK