Ford's UK Investment Under Threat Due to Strong Pound

The strong pound is casting a shadow over Ford's long-term investment in the UK, with the company's CEO Jac Nasser admitting that it could become cheaper to build cars abroad. The car giant has already taken steps to mitigate the effect of the strong pound, putting workers at its Dagenham factory on a four-day week due to reduced overseas sales of the Fiesta. Despite its commitment to Britain, Ford's preference to have a strong manufacturing presence in the UK may be tested if the situation continues.

Key Takeaways:

• Ford's CEO Jac Nasser has expressed concerns that the strong pound could affect the company's long-term investment in the UK.
• The strong pound has already led to a reduction in overseas sales of the Fiesta, forcing Ford to put workers at its Dagenham factory on a four-day week.
• Nasser emphasized Ford's commitment to Britain, but also stated that it may become incompatible from a cost point of view if the situation continues.
• Ford's preference to have a strong manufacturing presence in the UK may be challenged by the economic reality of the strong pound.
• The company's commitment to its Halewood plant is being reassessed due to the strong pound, with the possibility of moving production to the States.
• BMW, the German owners of Rover, may also face job losses and potential closure of their Longbridge plant due to the high pound.

Statistics:

• 4-day week for Ford workers at the Dagenham factory due to reduced overseas sales of the Fiesta.
• Jaguar X400 production may be moved from Halewood to a plant in the States due to the strong pound.
• BMW is considering potential job losses and closure of their Longbridge plant due to the high pound.

Sources:

• "Ford's Jac Nasser admits pound may hit UK investment," by Ken Gibson, not specified source or date.
• "Bonus for bosses at BMW but job cuts loom at Longbridge," [1] by Richard Shearer, not specified source or date.
• Not specified source or date.