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Ford, which makes 1.3 million engines at two British locations, Bridgend and Dagenham, and cars in Germany, has warned it could face $1 billion in tariff costs in case of a so-called hard Brexit. While the company has announced 5,000 job cuts in Germany, its second-biggest European market, it has yet to make major decisions in Britain, which is its biggest. Armstrong said Ford was already spending tens of millions on euros on measures such as currency hedges and shifting inventory between countries. He said the best case scenario was that money spent preparing for Brexit would be “wasted” cufflinks nordstrom.
Britain’s departure from the EU has been pushed back from March 29 until at least April 12 or potentially much later, ruining some of the contingency plans of certain carmakers. BMW’s Mini plant in Britain is closing for four weeks and Peugeot’s Vauxhall car factory for two weeks in moves planned months ago to help deal with any disruption from Brexit. “We’ve been clear with the government in the UK and also in Brussels, we have to maintain frictionless trade at the borders and tariff-free trade,” said Armstrong cufflinks nordstrom.
Britain’s largely foreign-owned car industry has become increasingly incredulous as a stable and attractive investment environment descends into deep political crisis. Ford’s British-built engines, which are shipped for fitting in vehicles in Germany, Turkey, the United States and elsewhere, could face delays and extra costs from a no-deal Brexit. “We’ve spent the last 40 years putting a business together that relies on cross-border trading,” said Armstrong, who is overseeing an overhaul of Ford in Europe to refocus on its strong position in commercial vehicles and on popular European lines such as Fiesta, Britain’s top-selling passenger car cufflinks nordstrom.
“We can’t radically reshape on day one so you’d have to live with (tariffs) for a period of time,” he said. Armstrong said Ford has hedged against the possibility of a sharp fall in the value of the pound through the end of 2019, while stockpiling inventory would help bridge a one or two month period of potential chaos around Brexit. “But it’s impossible really to mitigate the financial impact in the longer term of no-deal,” he said cufflinks nordstrom. Ford could try to pass on higher tariff costs, but that would be difficult in Britain, where a recession would mean falling sales, he added..
LONDON (Reuters) – Ford would have to take a “long, hard look” at its British operations, which include two engine factories, if Britain leaves the European Union without a deal, the U.S. carmaker said on Tuesday cufflinks nordstrom. “If we were to get to a no-deal Brexit .. then we would have to take another long, hard look at the operations that we have in the UK,” Ford’s Europe Chairman Steven Armstrong told Sky News. Armstrong said Ford is stocking engines in Europe and components in Britain alongside bringing more vehicles into Britain, the company’s third-largest global market where it builds 1.3 million engines but no vehicles..