- IPO: 11 public offers raise Rs 33,000 cr between April-June FY23; 17 more in pipeline
- Rakesh Jhunjhunwala-backed Akasa Air first commercial flight flagged off by Civil Aviation Minister Jyotiraditya Scindia on this
- IRDAI to rename grievance redressal mechanism; complaints can be filed in regional languages soon
- Market next week: Global cues, macro numbers, last batch of earnings to dictate D-Street in holiday-truncated week: Experts
- Eight of top-10 valued firms add Rs 98,235 cr in m-cap; Infosys, TCS lead gainers
Correction: No-deal Brexit would cost Ford up to $1 billion - source
(Corrects paragraph 3 to Ford spokesman, not unnamed source) Ford faces a bill of up to $1 billion if Britain leaves the European Union without a deal, comprising World Trade Organization tariffs and the impact of a weaker pound, a person familiar with the company`s plans said on Thursday.
The impact of Brexit on Ford, based on internal calculations, would be in the range of $500 million to $1 billion depending on a variety of factors, said the person, who asked not to be identified discussing internal company planning.
Sky News earlier on Thursday reported the hit could be $800 million, citing a Ford spokesman.
Car makers and other manufacturers, including Airbus earlier on Thursday, have warned about the toll a no-deal Brexit could impose, including higher tariffs, disruption to supply chains and threats to jobs.
Britain is due to leave the European Union in 64 days, and with Prime Minister Theresa May failing to win support for her negotiated deal, companies are increasingly worried about the possibility of a chaotic Brexit.
Ford Chief Financial Officer Bob Shanks on Wednesday declined to say what the financial impact of a no-deal exit could be, but said Ford was already planning for it.
"We clearly have already started to work on the eventuality of there being a hard Brexit," he told reporters at the No. 2 U.S. automaker`s headquarters outside Detroit. "We`re certainly hoping that does not happen, but we can`t wait."
"We`re actually incurring costs, doing things now to prepare for that, so there will be an impact. It`s a material impact," he added.
Last week, Shanks said a no-deal exit was unlikely, but if it occurred it would be "catastrophic."
In July 2016, Ford said that Britain`s decision to leave the EU would impact the automaker by $800 million to $1 billion over two years.
Ford, the top-selling automotive brand in Britain, operates two engine plants in Britain, its third-largest market, and the destination for roughly one in three cars made at its German Cologne plant.
On Jan. 10, Ford, which employs 53,000 people in Europe, said it would cut thousands of jobs and look at plant closures in Europe as part of its plan to return to profit in the region.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.