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Ford’s Joseph Hinrichs Warns Brexit Risk Has Increased

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Automakers with operations in the UK have worried significantly about Brexit and what effect it will have on their interests within the UK. Ford’s Joseph Hinrichs, President of Automotive, has warned that the chances of a no-deal Brexit have risen in the last few months. Joseph Hinrichs said that the “key” is going to be what happens at the borders, ports, and most importantly, what happens to the pound sterling when all is said and done.

Joseph Hinrichs noted that it has been a “bit of a rocky road.” The chances of a no-deal Brexit have risen in the last few months as new Prime Minister Boris Johnson has ramped up preparations for a possible Brexit in October. Ford Europe has been spending millions in preparation for Brexit.

The money has been spent on foreign currency exchange funds and shifting inventory between countries, among other measures. Ford executives had stated that best-case scenario, the money it has spent had been wasted. The automaker has stated that it could lose as much as $500 million to $1 billion in the wake of Brexit.

Ford has also said that if a no-deal Brexit happens in the UK, its vehicles and components could be taxed when imported and exported from the UK. The UK is a significant market for Ford, accounting for 6 percent of its global sales volume in 2017. Ford has also warned that 7,000 jobs would be at risk in a no-deal Brexit scenario. Ford operates two factories in the UK but plans to close its Bridgend Engine Plant in Wales next year. The plant closure will see 1,700 workers lose their jobs, the automaker has stated that Brexit wasn’t a decision in the plant closure. While other manufacturers had expressed interest in the Ford factory once Ford is gone, no offers or decisions have been made at this time.

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Source: Reuters

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Shane is a car guy with a fondness for Mustangs and off-roading.

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Comments

  1. vbondjr1

    Honestly, it needs to happen. Ford puts WAY too much emphasis on European and Chinese markets. It’s an American car company and as such, it should be an AMERICAN car company. Ford hasn’t realized that their European interest have cost them billions of dollars in making bad cars, bad design and then bringing them over to America and failing miserably. The Contour, Mystique, focus, cougar, fusion & Ecosport all completely SUCK! Every single model of ever single vehicle I just mentioned was terrible from start to finish. All of the extra tech BS and nonsense that ford has put into their cars is completely and utterly stupid.
    If Ford wants to do something right for a change, cut of all ties to Europe and Asia and focus on the American and Australian markets. Screw China! Ford’s entire lineup should consist of two cars, the Mustang and the Falcon, Both of them on the CD6 platform along with the Ford Explorer. Other than that, Ford needs to have the Ranger, the Bronco, the Expedition, the F150 and the Super Duty series and that’s it for the Ford Lineup. The engine lineup should go back to simple pushrod engines (just like GM and Dodge are excelling at) with a 5.4L V8 a 6.2L V8 and a 7.3L V8 along with a 2.3L Turbo-4 cylinder and that should be it. Ford already had a 10-speed auto and a 10-speed hybrid transmission, put those two behind their gasoline engines along with a 7-speed DCT and you have yourself a set of winning drivetrains. Update the 3.0L Powerstroke and the 6.7L Powerstroke V8 give both of the the diesel 10-speed automatic transmission and that’s all Ford needs.
    As far as Lincoln is concerned, this is the brand that should receive more of the techy stuff, the hybrids, electric vehicles, etc. Seeing that the CD6 platform is a modular platform, Not only do you have the Aviator which sits perfectly on the CD6 platform, but a True Continental and even a Zephyr and Mark X coupe should join the lineup. The motor company could easily adapt a high output 3.5L Ecoboost V6 450/510tq and mate that to a 10-speed hybrid drive line with AWD and produce a truly high-performance Grand Touring setup in a Lincoln Zephyr that would create an American version of the Rolls Royce Wraith. The Continental on the CD6 platform with a similar setup would be the equivalent of the Bentley Flying Spur while the Mark X would be more of the Continental GT coupe competitor in size and performance. Granted these cars should not look like copies of the European cars I mentioned, but they would fill that role in an American vehicle type way, also offering fully electric variants of each vehicle. The Aviator should be more competitive with the Range Rover. Above that you have your Lincoln Navigator which still competes with vehicles such as the Escalade, and Denali class vehicles. Lincoln should also get back into the truck scene to compete with GMC’s Denali lineup, taking the Platinum and Limited editions from Ford’s F150 series and making a new Lincoln Blackwood pickup truck that actually functions as a pickup truck and not as an over sized Town car. This is where Ford should have it’s Electric pickup truck and hybrid pickup truck, leave the F150 as a regular truck. A 3.5L twin turbo V6 with a 10-speed hybrid transmission would work well for the Lincoln Pickup and it should should still be able to do off roading and everything else just like the GMC trucks should.
    Not only does this simplify the lineup but it also does a few other things. First, simpler cars make it easier for not only technicians to work on them but also for the DIY customers to own them which will make them more desirable so they’ll sell better. Along with that, it cuts down costs because you now have no FWD vehicles so no transaxles, or any of that kind of stuff leaving only four transmission options (10-speed auto, 10-speed hybrid auto, 7-speed DCT and 10-speed diesel). You have less engines to make because you only have one engine for Lincoln (3.5L twin turbo), four gasoline engines for Ford and two diesel engines. Also there would only be four platforms, CD6, the Ranger/Bronco platform and the F150/Expedition/Navigator platform and the Super Duty platform. All of these things easily cut out so many unnecessary expenses and allow Ford to not only produce cars that people would actually want to buy, but would be able to afford and build customer loyalty. Another things would be to increase American production of vehicles and parts which would open more factories in America, thus creating more jobs and bringing in more money for the American Auto industry. Simple, effective and productive and still innovative.

    Reply
  2. gareth

    I have to disagree focus, fiesta,mondoe are all good or excellent drivers cars Europe is a very important market for ford especially the comercial bussienes.Yes ford is a American company but it is a international business so it needs to bussienes in other countries.If ford did not put tech in their cars they would be slated and deemed out dated by car critics and remember a lot people buy cars on what they read.

    Reply
  3. cwjh

    Joe Hinrichs …top worry should be all the recalls …that are happening under his watch….Quailty is JOB 1…

    Reply

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