Ford mulls cost cutting moves
Ford has forecast the decision to leave the EU could cost the company $1bn over the next two years, raising concerns over its manufacturing capacity and price rises in the UK.
According to Ford chief financial officer, Bob Shanks the sterling’s devaluation and an expected slowdown in UK car sales could cost Ford up to $500m a year until withdrawal from the EU trading bloc is complete. As a result, Shanks stated the business would need to ‘look more at cost’, and would find a way to ‘claw that back’.
The moves come as Ford’s net income fell nine per cent to $2bn in the second quarter of 2016 as the company’s China sales weakened and the company failed to match better results from last year. ‘We’re seeing elevated economic risk for the most part globally, and particularly, in what is happening with Brexit,’ Shanks told media on announcing the results.
Ford is said to be continuing ‘to look at the business and align production with demand and consider any move to maintain profitability.’
Ford has two manufacturing plants in the UK, Dagenham and Bridgend.