Ford Cuts Investment Plan for U.K. Engine Plant by 45%

Ford Motor Co. has reduced its planned investment in an engine plant in Bridgend, England, to £100 million ($134 million) from the original £181 million ($243 million), the Financial Times reports.

The carmaker had intended to prepare the factory to make as many as 250,000 gasoline engines per year beginning in 2018. But FT says company officials tell the plant’s employees the new target is to add half that capacity.

Ford blames the cutback on slumping demand in Europe and insists the reduction is unrelated to the U.K.’s vote in June to exit the European Union. But FT says Ford previously announced it is trimming its third-quarter vehicle production in Europe by 22% to 295,000 units because of an expected drop in demand due to Brexit.

Ford also opined shortly after the British vote that it might close factories in England to offset an expected $1 billion hit to its revenue resulting from Brexit.