Ford Says “Hard” Brexit Could Cost It $1 Billion
Ford Motor Co. says it will lose as much as $1 billion if the U.K. leaves the European Union in late March without a new trade deal.
#economics #labor
Ford Motor Co. says it will lose as much as $1 billion if the U.K. leaves the European Union in late March without a new trade deal, Reuters reports.
“We’re certainly hoping it does not happen, but we can’t wait,” Chief Financial Officer Bob Shanks tells reporters in Detroit. He says the company has already incurred costs as it prepares its British operations for the chaos of a so-called “hard” Brexit.
Ford no long assembles cars in the U.K. But it owns two engine plants there that supply the company’s car plant in Cologne, Germany.
Severing ties with the EU completely would replace the tariff-free benefit of EU membership with World Trade Organization tariffs as great as 10% and disrupt supply chains between the two regions. All carmakers in Britain have warned that the resulting rise in costs would discourage them from investing further in the U.K. and could eventually force them to relocate production elsewhere.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data