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Ford to consider closing UK factories

Ford, the largest car brand in the UK, has warned it will consider closing its two remaining British factories.

This is to offset the $1 billion which it says the Brexit referendum decision may cost the company over the next two years.

It has also warned that price rises will be necessary in the UK to make up for post referendum currency fluctuations

Ford stopped making passenger cars in the UK in 2002. But it still makes engines at plants in Dagenham and Bridgend that are exported to the EU where the cars are assembled.

Many cars are then shipped back to the UK to be sold.

Slashed jobs

Ford has already slashed some 5,700 EU jobs in the last five years after closing two of its UK plants and one in Belgium.

“We’re seeing elevated economic risk for the most part globally, and particularly, in what is happening with Brexit,” said chief financial officer Bob Shanks said.

He said the referendum had already cost Ford about $60 million in the second quarter with the cost for the year to run to $200 million. Each further year until Britain leaves would cost it $400 million to $500 million, the company said.

Almost a third of Ford’s European sales are in the UK.

 

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