Ford projecting $1bn loss due to Brexit, considering shutting down UK/Euro plants.

[Springsteen]

https://next.ft.com/content/5f20ead4-54c5-11e6-9664-e0bdc13c3bef


Ford is considering closing plants in the UK and across Europe in response to Britain’s vote to leave the EU, as it forecast a $1bn hit to its business over the next two years.

The US motor company, which is the biggest car brand in the UK, will also raise the price of cars sold in Britain before the end of the year. Bob Shanks, chief financial officer, said a rise was needed to claw back money lost through foreign exchange movements.


Mr Shanks said a combination of sterling’s devaluation and an expected hit to the UK car market would cost Ford $200m this year and another $400m to $500m each year over the next two years.

“We’re going to have to look more at cost,” he said. The company would find a way to “claw that back”.

Questions have been raised over prospects for the UK’s car industry in the wake of the Brexit ballot, with analysts questioning whether the plants can win fresh work during a period of uncertainty over trade and the country’s position in the single European market.

Ford’s two remaining UK plants are at Bridgend and Dagenham, making engines that are exported to other EU countries for final assembly. Ford then reimports many of these engines in completed vehicles for sale in the UK.

Analysts have warned that some carmakers would be forced to close plants in the UK if it faces trade barriers with the rest of Europe after Brexit.

Ford has already closed all its remaining UK carmaking plants in the past five years, as well as one in Belgium with the loss of 5,700 jobs.

Asked if the group would shut its remaining UK manufacturing operations, Mr Shanks said: “Everything is going to be on the table across Europe”.

Just look at all this good economic news for Britain, it just keeps piling on. :hammerhead:

Just another example of how Brexit will "help the UK flourish economically," right. Let me see you all spin this one.

[Hawker]

If Ford has been continuing to close plant after plant the past few years prior to Brexit, sounds like it was just the nail in the coffin and not necessarily the match and closing down these plants would've been inevitable. Nice spin though

[Springsteen]

If Ford has been continuing to close plant after plant the past few years prior to Brexit, sounds like it was just the nail in the coffin and not necessarily the match and closing down these plants would've been inevitable. Nice spin though

A 1 billion loss due to huge complications in trade agreements due to Brexit is somehow is just a simple "nail in the coffin".

Did you just ignore the part of the article in which Analysts state not just Ford, but carmakers in general are forecasted to shut down plants due to the complications of Brexit? Who's spinning here, exactly :rolleyes:

[Nick Young]

Perhaps British automobile companies will see this as an opportunity now that there is a big gap in the market from the #Fordxit.

There is a lot of opportunity for British entrepreneurs now.

[UK2K]

Perhaps British automobile companies will see this as an opportunity now that there is a big gap in the market from the #Fordxit.

There is a lot of opportunity for British entrepreneurs now.

My first thought as well....

When Ford leaves, someone else will replace it. That's how the market works. Which means British auto makers will see a jump in revenue.

Not to mention, the #brexit has little to do with Ford closing it's plants in the UK. From your article:


Ford has already closed all its remaining UK carmaking plants in the past five years, as well as one in Belgium with the loss of 5,700 jobs.

In the second quarter, Ford reported margins of 5.8 per cent in Europe, up from 2.3 per cent a year earlier, lifted by record European profits on the back of strong sales. But weakness in other key markets resulted in net profit falling 9 per cent to $2bn in the second quarter, below expectations.

I see you left these paragraphs out. But we can pretend they're related.

[Akrazotile]

Sometimes it hurts to rip off a bandaid.


OP buying into all the fear mongering over short term losses.


OP a typical sheep who hates Brexit ONLY bc "its racisttttt!!!!!"


And will happily push any talking point big business gives him to taunt and scare others who disagree.



:facepalm

[Dresta]

If Ford has been continuing to close plant after plant the past few years prior to Brexit, sounds like it was just the nail in the coffin and not necessarily the match and closing down these plants would've been inevitable. Nice spin though
Yes, they are shifting blame to hide the fact they are struggling, just like the people who point to the weak pound to hide the fact that the pound is weak because the UK is in an economic mess, and was in one long before the Brexit vote.

But of course, OP peddles propaganda like a good little sheep. "OMG if Ford says it, it must be true: how could they have any interests of their own to protect!?!?!?"

Brexit hasn't even happened yet and people still buy this bs.

[Springsteen]

Perhaps British automobile companies will see this as an opportunity now that there is a big gap in the market from the #Fordxit.





When Ford leaves, someone else will replace it. That's how the market works. Which means British auto makers will see a jump in revenue.

Yeah, just like all those new automakers jumped right in after General Motors left Detroit right? The market worked exactly as planned, and they saw a jump in revenue, and uh...

http://i.dailymail.co.uk/i/pix/2013/03/04/article-2286878-186A892D000005DC-815_964x395.jpg

But I'm sure that outside "British auto makers" will be chomping at the bit to open plants in a country who had now created needless trade barriers for entrepreneurs. Sure guys.

http://i.imgur.com/iP42wHz.gif

[Nick Young]

No, not like Detroit.

The British people still need cars. They will need to get them from somewhere. When Ford leaves, other car manufacturers will compete to fill the empty gap in the market from the loss of Ford.


Why can't it be British car manufacturers?

There are a lot of opportunities due to the Brexit for British companies and entrepreneurs now that they won't have to compete as much with foreign companies..

[DukeDelonte13]

Perhaps British automobile companies will see this as an opportunity now that there is a big gap in the market from the #Fordxit.

There is a lot of opportunity for British entrepreneurs now.


Is there any British owned car companies left?


MG is chinese.

Bentley is german. So is Rolls-Royce. So is Mini.

Jaguar and Landrover are owned by Tata.

I guess Aston Martin is left, but that is 36% owned by an Italian invenstment group.

[DukeDelonte13]

No, not like Detroit.

The British people still need cars. They will need to get them from somewhere. When Ford leaves, other car manufacturers will compete to fill the empty gap in the market from the loss of Ford.


Why can't it be British car manufacturers?

There are a lot of opportunities now due to the Brexit for British companies and entrepreneurs now that they won't have to compete as much with foreign companies..

:hammerhead:

Lord you are dumb.

[Nick Young]

:hammerhead:

Lord you are dumb.
Please explain how my statement, and in particular the bolded statement, is "dumb":cheers:

[Dresta]

Yeah, just like all those new automakers jumped right in after General Motors left Detroit right? The market worked exactly as planned, and they saw a jump in revenue, and uh...

http://i.dailymail.co.uk/i/pix/2013/03/04/article-2286878-186A892D000005DC-815_964x395.jpg

But I'm sure that outside "British auto makers" will be chomping at the bit to open plants in a country who had now created needless trade barriers for entrepreneurs. Sure guys.

http://i.imgur.com/iP42wHz.gif
Did this f*cking idiot just compare the entirety of the UK to Detroit? Are you literally retarded? This is a serious question...


edit: oh, and btw, leaving the EU hasn't "created needless trade barriers"---the EU itself did just that, but instead of protecting British industry, it protected French agriculture, German manufacturers, and so on. The EU was not free trade: it is a large protectionist trade bloc that excludes most of the world from its markets. Indeed, it uses the bribe of access to its markets as a way to expand itself (as it did with the former Eastern Bloc countries, who it treated punitively until they consented gut their native industry, join the EU, and abide by its directives). This is no magnanimous power--it is an aggressively expanding Empire, which seeks the dissolution of countries, national identities, and the right of people to govern themselves. It is already in the process of breaking up countries like the UK and Spain, and you will only see further balkanisation in the future.

[UK2K]

Yeah, just like all those new automakers jumped right in after General Motors left Detroit right? The market worked exactly as planned, and they saw a jump in revenue, and uh...

But I'm sure that outside "British auto makers" will be chomping at the bit to open plants in a country who had now created needless trade barriers for entrepreneurs. Sure guys.

http://i.imgur.com/iP42wHz.gif

They moved elsewhere, and people in Detroit bought other vehicles...

Or did everyone in Detroit stop buying cars all of a sudden?

[Nick Young]

Is there any British owned car companies left?


MG is chinese.

Bentley is german. So is Rolls-Royce. So is Mini.

Jaguar and Landrover are owned by Tata.

I guess Aston Martin is left, but that is 36% owned by an Italian invenstment group.
https://en.wikipedia.org/wiki/Vauxhall_Motors

https://en.wikipedia.org/wiki/Bristol_Cars

https://en.wikipedia.org/wiki/Marlin_(car)

https://en.wikipedia.org/wiki/Morgan_Motor_Company

https://en.wikipedia.org/wiki/McLaren_Automotive

https://en.wikipedia.org/wiki/Lister_Cars

https://en.wikipedia.org/wiki/Caterham_Cars

https://en.wikipedia.org/wiki/Aston_Martin

https://en.wikipedia.org/wiki/Midas_Cars

Lots of opportunities for companies like these to grow and gain a firmer grip in the market now that Ford is leaving :cheers:

I am of the Machiavellian school of economy. It is better long term to produce in house than it is to outsource and rely on foreign companies.

IMO I have lived in the UK long enough to see how an over reliance on outsourcing has destroyed too many British industries and IMO the British economy in general.

Now is the time for the UK to fix this. Lots of opportunities and lots of money to be made for smart British companies.

[west_tip]

Couple months back Ford announced they are moving production of small cars/hybrids from the Detroit to Mexico: http://www.cbsnews.com/news/ford-will-move-small-car-production-to-mexico/

Why is an American company moving jobs from the United States to Mexico? There aren't any political reasons like brexit to blame so what's the rationale? :confusedshrug:

[DonDadda59]

Meanwhile, in the greatest Nation on Earth...


Ford profit triggers record $9,300 UAW worker bonuses

Ford Motor (F) reported a strong fourth-quarter and full-year profit, enough to trigger record $9,300 profit-sharing checks for about 52,700 hourly workers.

The automaker on Thursday reported net income of $1.9 billion in the fourth quarter and $7.4 billion for the year. Revenue was $40.3 billion for the quarter and $149.6 billion for the year.

Pretax profit in the final three months was $2.6 billion, contributing to $10.8 billion for the year. The company made money in every region except South America, with new records in North America and Asia Pacific. Europe is back in the black for the first time since 2011.

"We promised a breakthrough year in 2015 and we delivered," Ford CEO Mark Fields said in a statement.

http://www.usatoday.com/story/money/cars/2016/01/28/ford-motor-company-fourth-quarter-earnings/79450050/


But of course the John Bulls of the World (not naming names) want to export that f*ckery here. :facepalm

[Nick Young]

But of course the John Bulls of the World (not naming names) want to export that f*ckery here. :facepalm

What "f*ckery"? Profits and worker bonuses=f*ckery?:confusedshrug:

Why are you upset to learn that an American car company with a proud history made money?

[iamgine]

Damn why is Ford struggling. They make good cars.

[Dresta]

https://en.wikipedia.org/wiki/Vauxhall_Motors

https://en.wikipedia.org/wiki/Bristol_Cars

https://en.wikipedia.org/wiki/Marlin_(car)

https://en.wikipedia.org/wiki/Morgan_Motor_Company

https://en.wikipedia.org/wiki/McLaren_Automotive

https://en.wikipedia.org/wiki/Lister_Cars

https://en.wikipedia.org/wiki/Caterham_Cars

https://en.wikipedia.org/wiki/Aston_Martin

https://en.wikipedia.org/wiki/Midas_Cars

Lots of opportunities for companies like these to grow and gain a firmer grip in the market now that Ford is leaving :cheers:

I am of the Machiavellian school of economy. It is better long term to produce in house than it is to outsource and rely on foreign companies.

IMO I have lived in the UK long enough to see how an over reliance on outsourcing has destroyed too many British industries and IMO the British economy in general.

Now is the time for the UK to fix this. Lots of opportunities and lots of money to be made for smart British companies.It also binds a nation, hand and foot, to its financial sector. I thought these people didn't like bankers? How quickly things change...

[Nick Young]

I genuinely don't understand these people.

Why is foreign outsourcing better than in house production?


Foreign companies currently produce better quality of cars generally, but it is beneficial long term for the British people if British companies are producing British cars in Britain.

There are still great British-owned auto manufacturers, like McLaren and Aston Martin. Now they have more of a chance to expand their British production facilities and UK market share.

Also the smaller companies like Vauxhall will have more opportunity for growth.


How is any of this bad? Why would people argue against these things?

[DonDadda59]

What "f*ckery"? Profits and worker bonuses=f*ckery?:confusedshrug:

Should've clarified. Record profits and record bonuses for tens of thousands of workers is what happens in the greatest nation on Earth. It's a beautiful thing. Especially when some of our own tried to destroy that greatness (http://www.nytimes.com/2008/11/19/opinion/19romney.html).

The 'f*ckery' I was referring to was the Boris/Farage/Drumpf brand of self destruction.

Keep that shit on your Island with your Earl Grey and affinity for bowing to tyrants.

[Nick Young]

Should've clarified. Record profits and record bonuses for tens of thousands of workers is what happens in the greatest nation on Earth. It's a beautiful thing. Especially when some of our own tried to destroy that greatness (http://www.nytimes.com/2008/11/19/opinion/19romney.html).

The 'f*ckery' I was referring to was the Boris/Farage/Drumpf brand of self destruction.

Keep that shit on your Island with your Earl Grey and affinity for bowing to tyrants.
It's not my island.

But I am spreading the word of freedom here Thomas Paine-style, and when I was working in the UK education sector I did indeed spend much of it encouraging universities to stop outsourcing their cafeterias, security teams and student stores to outside companies. Did any of them listen? Probably not, but I made sincere effort, that's all I could do.

I am not God of the world or a politician but I try to do what I can.

[Sarcastic]

Perhaps British automobile companies will see this as an opportunity now that there is a big gap in the market from the #Fordxit.

There is a lot of opportunity for British entrepreneurs now.

The demand for Rolls Royce, Jaguar, and Bentley are not high enough to fill that gap, unless they drastically reduce prices.

[Nick Young]

The demand for Rolls Royce, Jaguar, and Bentley are not high enough to fill that gap, unless they drastically reduce prices.
Jesus Christ, you people are very slow.......

They can either design a low cost commercial car, or the other British companies that are already making low cost commercial cars will sell more of their cars. British companies all have more opportunities now that Ford is leaving the British market and now that Ford cars are becoming more difficult to purchase in the UK.

If people need a car, but can't buy Ford, they will buy another car.

If there is a gap in the market, companies will do what they can to fill that gap.

Surely that is a simple concept that you are capable of understanding without any more clarification.

[Sarcastic]

Jesus Christ, you people are very slow.......

They can either design a low cost commercial car, or the other British companies that are already making low cost commercial cars will sell more of their cars. British companies all have more opportunities now that Ford is leaving the British market and now that Ford cars are becoming more difficult to purchase in the UK.

If people need a car, but can't buy Ford, they will buy another car.

If there is a gap in the market, companies will do what they can to fill that gap.

Surely that is a simple concept that you are capable of understanding without any more clarification.

I agree that eventually the gap will be filled, but that could take years for those companies to generate the demand. In the meantime people will continue to buy other low cost automobiles from other manufacturers, that aren't produced in the UK. What are those factory workers to do in the meantime while the other companies are building their means of production?

As was said during the Great Depression, in the long run everything evens out, but people don't need to eat in the long run. They need to eat every day.

[Nick Young]

I agree that eventually the gap will be filled, but that could take years for those companies to generate the demand. In the meantime people will continue to buy other low cost automobiles from other manufacturers, that aren't produced in the UK. What are those factory workers to do in the meantime while the other companies are building their means of production?

As was said during the Great Depression, in the long run everything evens out, but people don't need to eat in the long run. They need to eat every day.
Yes. Long term beneficial changes sometimes take years.

Yes. As long as the government continues to have laws that favor foreign mega corporations ahead of smaller home grown companies, the smaller home grown companies will generally lose out to foreign mega corporations.

Did Ford, Toyota, and Honda begin life as mega corperations or did they gradually work their way up to achieve their place in the market that they currently possess?

The solution there is for the government to create laws and policy that encourages home grown companies to flourish and remove laws that dis-incentivize home grown companies from outsourcing their production.

People in the UK are not even close to starving, and the economy is not close to the levels it was at during Great Depression. Your example is hyperbolic.


The UK has the fifth largest economy in the entire world, located in one of the best geographical positions in the world for world trade. They aren't a starving 3rd world conglomeration of islands in the middle of nowhere.

[Sarcastic]

Ford, Toyota, Honda didn't become mega corporations because they filled a gap. They became mega corporations because they made great cars, and there was great demand for their products. The English car companies are not going to expand just so they can fill in gaps. They will expand if there is demand for their products. Meanwhile the English factory workers will be out of a job. They are not just gonna go hire workers to make cars for a demand that is non existent.

[Nick Young]

Ford, Toyota, Honda didn't become mega corporations because they filled a gap. They became mega corporations because they made great cars, and there was great demand for their products. The English car companies are not going to expand just so they can fill in gaps. They will expand if there is demand for their products. Meanwhile the English factory workers will be out of a job. They are not just gonna go hire workers to make cars for a demand that is non existent.
You failed to understand the point.

Honda, Ford and Toyota did not become huge overnight.

It takes time for great companies to grow.

Yes, the discussion you are making makes perfect sense if you have no vision and are only thinking short term.

[Hawker]

British cars suck though. Landrover is one of the most unreliable pieces of shit in existence. I thought about buying one but I checked out consumer reports and the reliability ratings were terrible. The reviews refelcted that, "Looks sexy but ALWAYS in the shop."

Nick Young makes a solid point though. Maybe they oughta employ some american engineers and get their cars up to snuff. Train up the british engineers and then ship the americans back to the states.

[step_back]

We have built our own cars for decades. If Ford shuts down in the U.K it will give other businesses opportunities to expand. Welcome to capitalism.

P.S We will also be able to make our own trade deals. We could see more Japanese cars (Which IMO are superior) on the market as they won't have to pay the current EU tariffs.

[bluechox2]

isnt the brexit all about britain taking back control over some of its policies and market... so ford leaving is a good example of bringing back the market to British companies...


only people crying are the foreigners/companies ...this wioll boost the sales of domestic business across the UK

[sd3035]

American products are junk anyways

more good news for the British people :applause: :applause: :applause: :applause:

[dunksby]

Auto industry mechanics is much more complicated than that, Ford is not closing down their factories in the UK just because of Brexit. I hazard Ford has been losing money in the UK for a while now and the company found it a good time to pull the trigger now without losing face. The UK is a big market and nobody in their right mind would want to lose it, unless the said market is not viable anymore.

On another note, British cars are good but they are luxury vehicles mostly now to which a Ford absence would not mean much. So this move probably benefits other foreign affordable car makers, although the British people's purchasing power remains the main factor.

[Nanners]

Ford, Toyota, Honda didn't become mega corporations because they filled a gap. They became mega corporations because they made great cars, and there was great demand for their products. The English car companies are not going to expand just so they can fill in gaps. They will expand if there is demand for their products. Meanwhile the English factory workers will be out of a job. They are not just gonna go hire workers to make cars for a demand that is non existent.

Toyota and Honda became mega corporations because they made absolutely fantastic cars in the past few decades.

from the late 80s thru the early 2000s there is nobody who can beat toyota or honda in terms of quality and value.

[Lebowsky]

I genuinely don't understand these people.

Why is foreign outsourcing better than in house production?


Foreign companies currently produce better quality of cars generally, but it is beneficial long term for the British people if British companies are producing British cars in Britain.

There are still great British-owned auto manufacturers, like McLaren and Aston Martin. Now they have more of a chance to expand their British production facilities and UK market share.

Also the smaller companies like Vauxhall will have more opportunity for growth.


How is any of this bad? Why would people argue against these things?

Vauxhall is owned by GM. Their models are Opel models with a different badge.