Ford (NYSE: F) has been the latest carmaker to warn against a no-deal Brexit.
Steven Armstrong, the group’s European boss, warned that a no-deal Brexit could be “pretty disastrous” and could affect operations in the UK.
“For Ford, a hard Brexit is a red line. It could severely damage the UK’s competitiveness and result in a significant threat to much of the auto industry, including our own UK manufacturing operations,” Armstrong told the BBC.
“While we think this is a worst-case scenario and that a UK-EU deal will be reached, we will take whatever action is necessary to protect our business in the event of a hard Brexit,” he added.
The warning came on the same day Nissan and AstraZeneca (LON: AZN), who both said a hard Brexit was harming business.
Armstrong told the BBC his views about the suggested Canada-style trade deal, which were not positive.
“If this was introduced for all UK-EU trade, the level of congestion and blockages at the ports would undermine our just-in-time manufacturing system,” he said, highlighting the customs and border checks.
Ford is the latest carmaker to warn against Brexit impacts to business. Toyota (TYO: 7203), Jaguar Land Rover and BMW (ETR: BMW) have all said that Brexit could affect operations in the UK.
A spokesperson from Nissan (TYO: 7201) said on Monday: “In agreement with our employee representatives, the 2019-2020 pay negotiations in our UK plant and technical centre will commence in 2019 when we have better clarity on the future business outlook.”
Armstrong also made clear that his comments were not an excuse to minimise operations in the UK after the contract at the Bridgend plant ends in 2020.
“We have to look at what’s happening within our broader business. We have been very clear since [JLR] decided to put their business elsewhere that we would continue to look for options for Bridgend,” he said.
The comments come as Theresa May prepares for a Brexit summit on Wednesday, which will discuss the Northern Ireland border.
