Ford preparing alternative production sites to prevent no-deal Brexit tariffs
The automaker told British prime minister Theresa May in a private conference call with other business leaders of its plans.
Automaker Ford Motor is coming up with a back-up plan to prevent itself from paying higher tariffs and getting disrupted from its business in case if Britain leaves the European Union (EU) without a deal.
The firm told British prime minister Theresa May in a private conference call with other business leaders of its plans, British national daily newspaper The Times reported on Tuesday. Other businesses in the conference call also delivered the same warning as Ford to Mrs May, the report said.
Higher tariffs on firms, job losses at risk with a no-deal Brexit scenario
Last month, the automaker said it could face a bill of up to US$1 billion (£767 million) if a no-deal Brexit happens. The bill would comprise of World Trade Organization tariffs and frayed costs due to a weaker pound.
Ford operates two engine plants in Britain and employs 13,000 people there. It is the top-selling car brand in Britain and the country is its third-largest market.
Carmakers and other manufacturers have cautioned on the toll a no-deal Brexit could affect businesses. The problems on higher tariffs, disruption to supply chains and threats to jobs are real issues that will occur if Britain leaves the EU on a hard landing.
Britain is scheduled to leave the EU on March 29.
Foreign and local manufacturers jumping ship
Although some manufacturers have claimed that the decision to relocate their factories are unrelated to the Brexit turmoil, the timing of the shift places their move under scrutiny.
Last month, British home electronics maker Dyson said it will be moving its corporate head office to Singapore to cater to the geographical shift in their consumer portfolio.
The group said it will continue to grow its investments in its research and development labs in the United Kingdom (UK), as well as support the capabilities of its offices in Singapore, Malaysia, China, and the Philippines for this year.
Japanese electronics giant Sony also announced plans to shift its European head office from Britain to the Netherlands to avoid Brexit-related customs issues.
Sony’s move mirrors its rival Panasonic which moved its European headquarters from the UK to the Netherlands last year over similar concerns.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.