Ford has told Theresa May that it is ramping up preparations to shift production out of the UK, according to a report.
The US manufacturer’s warning comes after Nissan announced that production of its new X-Trail would go ahead in Japan rather than the UK.
During a private conversation between business leaders and the prime minister Ford said it was preparing alternative sites abroad, the Times reported.
Ford had already warned last month that a no-deal Brexit would cost it $1bn (£775m). Ford employs 13,000 people in the UK including 1,000 at its plant in Bridgend, south Wales whose jobs have already come under threat.
The company confirmed this month that 370 voluntary redundancies would take place at the site as the company takes measures to create a sustainably profitable business in Europe.
UK car production fell 9.1 per cent to 1.52 million units in 2018, a five-year low for the sector.
With eight out of 10 cars exported, weak demand in many markets, including the eurozone, the UK and China has depressed production.
Last week Toyota slashed its profit forecast for 2019 and warned that it will be impossible to avoid the harmful effects of a no-deal Brexit.
We cannot avoid the negative impact no matter how much we prepare beforehand if Britain leaves the EU with no deal, the firm’s senior managing officer Masayoshi Shirayanagi said
The industry’s trade body this month pleaded said nothing had changed since the 2016 referendum to reassure car manufacturers about the prospects of investing in Britain.
And they are beyond frustration with the politicians.