Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Meet the 2021 winners
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
July 28, 2016 01:00 AM

Ford takes $60M Brexit hit, says all options open for European cost cuts

Staff and wire reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    DETROIT -- Ford Motor Chief Financial Officer Bob Shanks said "all options are on the table" for cost cuts in Europe because of Britain's vote to leave the EU but said the company is not ready to announce any plant shutdowns in the UK.

    Shanks said the Brexit vote cost the company $60 million in the second quarter due to the falling value of the British pound. Ford expects Brexit will cost the automaker about $200 million this year, growing to $400 million to $500 million next year, Shanks said. That puts Ford's nascent recovery in Europe at risk.

    Ford CEO Mark Fields said on Bloomberg Television that Brexit affects both demand and currency costs.

    Ford does not produce any vehicles in the UK but it builds about 1.6 million engines in Dagenham near London and in Bridgend in Wales.

    Despite the Brexit hit Ford's second-quarter European profit nearly tripled to $467 million, the company said on Thursday.

    The automaker's European sales rose 7.5 percent in the first half to 718,700 vehicles, the biggest gain since 2010. But Europe's industrywide are sales are expected to weaken in the coming quarters, Shanks said.

    General Motors said earlier this month it was considering cost cuts in Europe to offset up to $400 million of potential headwinds triggered by Brexit vote, which jeopardizes its ability to return its Opel and Vauxhall division to a full-year profit.

    Volkswagen sales chief Fred Kappler said the automaker may review pricing if the pound's weakness persists although VW has no plans for near-term price increases to offset potential headwinds triggered by the currency's weakening

    VW has perceived no impact from Britain's decision to leave the EU on its sales in the UK and in mainland Europe, Kappler said during an earnings call with analysts on Thursday.

    Ford said on Thursday that its second-quarter global profit fell 9 percent to $1.97 billion. The company warned of a "very weak third quarter" as U.S. demand softens and the automaker launches redesigned versions of its heavy-duty pickups.

    Even with the decline, Ford achieved record net income and margin for a half-year period. But executives said the company was at risk of falling short of its full-year targets and was undertaking a series of "profit improvement actions" including cuts to manufacturing costs, without being specific.

    Bloomberg and Reuters contributed to this report

    CA106293728.PDF

    Ford Q2 report

    CA106293728.PDF >
    RECOMMENDED FOR YOU
    Punch CEO Guido Dumarey to speak at Automotive News Europe Congress
    Recommended for You
    Guido Dumarey Punch
    Punch CEO Guido Dumarey to speak at Automotive News Europe Congress
    Polestar CEO Thomas Ingenlath 2022
    Polestar CEO Thomas Ingenlath to speak at Automotive News Europe Congress
    Maria Grazia Davino Stellantis 2020
    Stellantis Europe sales and marketing chief to speak at Automotive News Europe Congress
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
        • Meet the 2021 winners
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us