If no agreement is made, a transition period is "critical for Ford's investments in the UK"

A Brexit transition agreement will be ‘critical’ to Ford’s British investments if a trade agreement can’t be signed in the next two years, according to the head of its European operation.

Speaking at the FT Future of the Car Summit in London Jim Farley, the CEO and chairman of Ford's Europe, said the firm's UK infrastructure could be affected if the movement of goods from Britain into the European Union is made more difficult following Brexit.

“We believe in a transition period. If an agreement is not done, there should be a transition period, that’s critical for our investments in the UK."

Farley added that Ford expects an agreement between Britain and the EU to be signed, but cautioned: "Eighteen months is not much time in which to do a deal.

Farley also talked about issues including the free movement of people, the Customs Union and the flow of trade across the UK/EU border in future. Farley raised concerns about the potential for what he termed 'friction loss' at the UK border. "It means more trucks, cash trapped and time lost," he said.

Leading EU automotive bodies warn of potential Brexit damage

Ford is now "spending a lot of time" trying to work out solutions to the problems of how to organsie its logistics post-Brexit. “There is a lot to do, but we have to be very ambitious, we are optimistic,” he said.

Brexit: EU single market is ‘critical’ to UK automotive sector

Further mobility developments predicted

While speaking at the Future of the Car Summit, Farley also talked about the future of autonomous driving. He predicted major breakthroughs would come in a second-wave of developments, which he termed "mobility 2.0".

“Now we’re in mobility 1.0. What’s exciting is 2.0 when the car is totally integrated into the city system," he said.

Farley drew parallels between the development of smartphone technology, in which the first wave of hardware was followed by a second wave of applications and commerce development that delivered the real benefits of the technology.

"We're already learning what mobility 2.0 will look like," he said. "Multimedia will become important. And one of the answers to the challenges is collaboration between Ford and the city," he said.

Farley also raised the possibility of a new mobility internet portal, emerging alongside Google and Facebook. He said: "What’s the Google search for mobility? It might not be Google or Facebook."

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Comments
18

10 May 2017
Coming from the company that pulled out of making cars in UK when we were in the EU.

 

Hydrogen cars just went POP

10 May 2017
Considering the Eu gave Ford a grant to build a new Ford Transit van factory using our money to put Uk workers out of work,they have a bloody nerve.Once JLR are self sufficient on engines within the next two years only 6 and 8 cylinder engines are Ford sourced, they will have lost over 600000 engines each year .Personally I think the worst case scenario should be a minimum 30% import tariff on imported goods from the EU ,components leave alone or 5% and for the people that want to purchase foreign with this cost we could subsidise the Uk manufacturers.
look at Nestle closing the Uk plant for Blue Ribbands to make in Poland ,we have stopped buying them.
The first thing we need to do is put on the packaging where manufactured and not say EU.
You can say many things about Trump but he certainly made the same manufacturers reinvest in USA.

10 May 2017
xxxx wrote:

Coming from the company that pulled out of making cars in UK when we were in the EU.

Sounds like someone's regretting pulling out of UK car production. Even PSA have said they will probably keep Ellesmere open so they can get around tariffs. What do ford have left in this country-

Diesel engines which are on their way out
Petrol engines that are not so much in demand as the UK designed 1.0L ecoboost
Dunton designs and development centre which any maker would happily buy I.e JLR

How long before ford production cease to exist in the uk

10 May 2017
Stirring it again, Autocar?

10 May 2017
Autocar are quoting Jim Farley. If you look at the supply chain in British auto industry you know there cannot be tariffs & barriers. They are voicing a genuine concern . We could face delays to manufacture & price increases from tariffs. Sorry it wasn't written on a bus . Brexit reality hitting home & those responsible are still trying to be oblivious to reality.

10 May 2017
"Brexit reality hitting home"? emmm The following wasn't on a bus either: UK unemployment rate held at an almost 12-year and FSTE at record levels (affects pensions) yea really hitting home. Maybe just affecting the rich with holiday homes.

 

Hydrogen cars just went POP

10 May 2017
xxxx wrote:

"Brexit reality hitting home"? emmm The following wasn't on a bus either: UK unemployment rate held at an almost 12-year and FSTE at record levels (affects pensions) yea really hitting home. Maybe just affecting the rich with holiday homes.

Manufacturers already have raised prices due to weak pound . We have rising inflation too. The most popular car in UK is the Fiesta a bread & butter model not exactly aimed st the rich. That's made in the EU so will increase in price , so adding to inflation. No guarantee unemployment will maintain current levels with car manufacturers & other industries weighing up their options based on the outcome of negotiations. Some have already moved part of their business to Europe. Unfortunately business has no loyalty and will seek the best deal for them. The EU market is way bigger than UK in isolation

10 May 2017
Bolida wrote:

Manufacturers already have raised prices due to weak pound . We have rising inflation too. The most popular car in UK is the Fiesta a bread & butter model not exactly aimed st the rich. That's made in the EU so will increase in price

If the price increases too high the public will stop buying them, other vehicles are available, Ford would be absolutely crazy to increase their prices beyond a reasonable price, we are their biggest market in Europe.

10 May 2017
The weak pound has helped the companies that export so its not all bad news on account of BrExit.

 Offence can only be taken not given- so give it back!

10 May 2017
Bolida wrote:

Autocar are quoting Jim Farley. If you look at the supply chain in British auto industry you know there cannot be tariffs & barriers. They are voicing a genuine concern . We could face delays to manufacture & price increases from tariffs. Sorry it wasn't written on a bus . Brexit reality hitting home & those responsible are still trying to be oblivious to reality.

The bloody bus.

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