Ford has stepped up warnings over a no-deal Brexit, saying it would take a "long hard look" at its UK operations in that event.

As Theresa May scrambles to find a way forward following a series of "no" votes on Brexit options in parliament, the chairman of Ford Europe told Sky's Ian King Live the company had a duty to protect itself from the prospect of becoming uncompetitive.

Steven Armstrong said Ford, which employs just under 13,000 staff in the UK including workers at its Dagenham and Bridgend engine plants, had already spent tens of millions of euros preparing for no-deal.

The sum included the stockpiling of components for its factories and he said it was money that, in the best case scenario, was going to be wasted.

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He had previously warned that tariffs could leave it with a $1bn bill.


He said on Wednesday: "Anything that puts either tariffs or friction at the borders in place - a no-deal Brexit - would be a disaster for Ford Motor Company but also the rest of the industry.

"We basically calculate that number through the cost of the tariffs of us bringing goods and services across from Europe and back into Europe from the UK and the loss of productivity we would have if we had to have some form of customs checks.

"So we've been very consistent in saying no-deal is not an option. We think it's about time the government and parliament in general got together and figured a way through this to allow us to continue with frictionless trade and take tariffs off the table."

Ford has not been alone in threatening UK jobs in the event of no-deal.

BMW has also said it would "need to consider" the future for the Mini plant outside Oxford and some engine work if that was to happen.

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Honda blamed other factors for its decision, in February, to shut the Swindon factory with the loss of 3,500 jobs.

Mr Armstrong said he loved its UK facilities but Ford could not afford extra costs as it continues a restructuring of its European operations.

Other pressures on carmakers include the economic slowdown globally and investment drain from the drive to replace petrol and diesel engines with hybrid and all-electric technology.

Mr Armstrong said Ford was planning to release eight new models this year - with 50% of the vehicles it produces being electric in some form by the middle of the decade.