Ford has said it will consider closing its two remaining UK automobile factories, both of which are in towns where the majority of people voted to leave the EU, to cover costs of $1 billion over the next two years.

Ford stopped making passenger cars in the UK in 2002. But it still makes engines at plants in Dagenham and Bridgend that are exported to the EU where the cars are assembled.

Many cars are then shipped back to the UK to be sold.

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The two UK plants employ around 3,800 people in towns where the majority of people voted to Leave the EU.

In Dagenham, 62 per cent of people voted to leave while in Bridgend 55 per cent said they wanted out.

Ford has already slashed some 5,700 EU jobs in the last five years after closing two of its UK plants and one in Belgium.

The price of Ford cars in the UK will also rise, according to Bob Shanks, chief financial officer, who blamed the changes on the tanking value of the pound against the dollar since the referendum. That has made Ford, a US brand, more expensive in the UK.

Carlos Tavares, the CEO of PSA Peugeot Citroen, warned on Wednesday that prices would have to rise in the UK.

“Everybody is now waiting for somebody to make the first step," he said.

Shanks said that Brexit had already cost Ford about $60 million in the second quarter with the cost for the year to run to $200 million. Each year until Britain leaves the EU would cost it $400 million to $500 million, the company said.

Almost a third of Ford's European sales are in the UK.

Shape Created with Sketch. Business news: in pictures Show all 8 left Created with Sketch. right Created with Sketch. Shape Created with Sketch. Business news: in pictures 1/8 Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019 Mahabis 2/8 Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant PA 3/8 RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30 PA 4/8 Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks Getty 5/8 Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks AFP/Getty 6/8 Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold AFP/Getty 7/8 French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process. 8/8 Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year. 1/8 Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019 Mahabis 2/8 Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant PA 3/8 RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30 PA 4/8 Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks Getty 5/8 Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks AFP/Getty 6/8 Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold AFP/Getty 7/8 French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process. 8/8 Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.

Ford shares fell by 9.5 per cent in New York after it reported quarterly net income down 9 per cent at $1.97 billion, from $2.16 billion a year earlier.

The company said sales in the US and China were lower than expected in the second quarter.

The Society of Motor Manufacturers and Traders has warned that car manufacturers and retailers will be affected if the UK government does not maintain unrestricted access to the single market.

The UK made 158,641 cars last month, 10.4 per cent more than in June 2015, SMMT figures show. Demand from the EU, because of access to the single market, drove growth, according to Mike Hawes, SMMT chief executive.

“These decisions were based on many factors but, primarily, on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce,” he said.

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