Ford goes Full Austerity

Today’s headline – Ford – is neither a triumph nor failure.

This time of year, economists and analysts trawl through company reports, hawkishly eyeing up the losers and winners from the past year, but today’s headline – Ford – is neither a triumph nor failure. The US car giant’s better-than-expected profits in North America, with revenues up 13 per cent, are buttressed against a 21 per cent decline in Europe.

However, the US car giant needs to be more worried about its performance across the water. Ford’s sales on the continent have plummeted to levels last seen in 1995 and what is worrying is that Ford’s executives aren’t worried. The company today released the bland comment citing that, “The business environment remains uncertain, and Ford will continue to monitor the situation in Europe and take further action as necessary”.

Such a statement, void of commitment, will do little to calm the company’s investors, let alone its European plant workers. Factory redundancies before Christmas caused riots in Genk, Belgium. In the UK job losses will also result out of plant closures in Southampton and Dagenham, East London.

So why is Ford not overly concerned of its continental money well? In October it rolled out its “European Transformation Plan”. This plan writes off afore mentioned factory closures as “cost efficiency actions”. It also forecast today’s headline European losses as the company consolidates assembly plants, introduces a new cars and focuses on increasing its brand and cutting costs.

Overall, it appears that Ford has implemented a policy akin to that of our Coalition Government. Austerity is the key word and plans to be for the next half decade for Ford’s European operations. Poor growth results will be ignored as unfortunate consequences of a larger plan as Ford, held up by US profits, will continue to cut expenditure in Europe.

While it comes as no surprise that Europe has been a stagnant market for cars since 2007, the UK has actually bucked that trend with sales hitting a four year high. And our most popular car – the Ford Focus.

In the past, Ford has often provoked strong reactions. Photograph: Getty Images

Oliver Williams is an analyst at WealthInsight and writes for VRL Financial News

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Liberal Democrats pledge to take Britain back into the European Union

Lib Dem leader Tim Farron is channeling the anger of the 48 per cent. 

The Liberal Democrats took losing 49 seats in the General Election last year with more resignation than you might expect. 

But it turns out there's one thing they'll kick up a fuss about - Europe.

As half of the nation digested the facts of Brexitgeddon, Lib Dem leader Tim Farron stole the show with his refusal to discuss voter breakdown.

He told the BBC: 'I accept the result, but by golly I don't agree with it." 

Now he has pledged to fight the next General Election on a platform taking Britain back into Europe.

Farron, who has accused Labour leader Jeremy Corbyn of "utter spinelessness", will tap into the growing discontent of Remain voters about the referendum result. 

With cries of "we are the 48 per cent", these voters argue such a decisive move should be dependent on more than a 50% majority. By Saturday afternoon, more than 1.6million had signed a petition calling on the Government to implement a rule that if the turnout was less than 75% and the vote in favour less than 60%, a second referendum should be called. 

The petitioners appear to come from university towns like Oxford, Cambridge and York, as well as larger cities. 

Farron said: “For many millions of people, this was not just a vote about Europe. It was a howl of anger at politicians and institutions who they felt they were out of touch and had let them down.
 
"The British people deserve the chance not to be stuck with the appalling consequences of a Leave campaign that stoked that anger with the lies of Farage, Johnson and Gove.
 
"The Liberal Democrats will fight the next election on a clear and unequivocal promise to restore British prosperity and role in the world, with the United Kingdom in the European Union, not out."

There's no doubting Farron's genuine indignation, or the Lib Dem's credentials when it comes to pro-EU pledges. And tapping into the groundswell of pro-EU sentiment is a smart move.

And his clear position makes a stark contrast to Labour's inward angst over immigration, free trade and leadership. 

But as EU leaders demand a quick resolution to Brexit, he may have less and less chance to implement his promise before it's too late.