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

[Springsteen]

https://next.ft.com/content/5f20ead4...4-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.

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

[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.

[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...



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.

[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..

Lord you are dumb.

[Nick Young]

Lord you are dumb.

Please explain how my statement, and in particular the bolded statement, is "dumb"

[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...



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.

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.

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

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.