Ford warns that 7000 British jobs at risk in no-deal Brexit
The US carmaker has warned that it may be forced to slash more than half of its British factory workers jobs in the event that the UK bails out of the EU without a deal in place.
Ford warned that it may have to cut more than 7000 British factory workers jobs if politicians in the UK and Brussels are unable to reach a consensus and avert a no-deal Brexit.
The carmaker did mention that it has not yet made a final decision on whether to make jobs cuts in its UK-based factories, where it employs around 13,000 people, but has said that a no-deal Brexit would likely have ‘catastrophic’ consequences for the British automotive industry in a statement it issued on Wednesday.
Ford will do whatever it takes to ‘preserve competitiveness’ post-Brexit
Theresa May is well aware that the danger that Brexit poses to the British automotive industry, with Ford warning against a hard Brexit in a conference call with her and other business leaders that was reported on by The Times newspaper on Tuesday.
‘We have long urged the U.K. government and parliament to work together to avoid the country leaving the EU on a no-deal-, hard Brexit-basis,” Ford Motor Company said in a press release on Wednesday.
‘We will take whatever action is necessary to preserve the competitiveness of our European business,’ the company added.
British car output hits the skids
British car output has fallen by 9.1% to 1.52 million units in 2015, representing a five-year low for the industry and the fastest rate of decline since the 2008 financial crisis, according to data from the Society of Motor Manufacturers and Traders (SMMT) in January.
Overall output for UK and overseas markets has declined 16.3% and 7.3% respectively, with Brexit uncertainty leading to British automotive investment being halved in 2018 as forecasts predict that two-thirds of UK car trade is at risk if a Britain leaves the EU without a deal.
‘Brexit is the clear and present danger and, with thousands of jobs on the line, we urge all parties to do whatever it takes to save us from ‘no deal,’ SMMT CEO Mike Hawes said.
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.
Please see important Research Disclaimer.
Trading around Brexit
Find out how the UK’s exit from the EU continues to affect traders, and discover:
- The unique opportunities in a ‘hard’ and ‘soft’ Brexit
- The markets you should be watching
- Everything that’s happened so far
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.