Marcin Mincer [Public domain, Public domain, GFDL (http://www.gnu.org/copyleft/fdl.html) or CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
On Tuesday, Ford said that it hopes to set up a bank in Germany during the second half of this year following its application for a licence in the country as a part of the strategy of the company to mitigate any risk from the United Kingdom withdrawing from the European Union in 2019.
Last year, Ford Credit Europe (FCE) applied for a German banking licence, to operate alongside the existing British one of the company, due to the future of passporting, which enables financial firms to serve the whole European Union from a single base, is not certain after Brexit.
A spokesperson for the company stated: “We anticipate that the German bank will be established in the second half of 2018.
“Any reorganisation of FCE’s business involving finance companies depends on the outcome of Brexit negotiations.”
The FCE said that it would maintain its headquarters in Britain and that the said plan would not include job cuts or notable changes to where their employees are based.
FCE is a wholly owned indirect subsidiary of Ford. The firm provides financial services to retail, dealers, fleet and business customers in the United Kingdom and 11 other countries in Europe.
The company said that as part of the Brexit contingency plans of the firm, it might be required to set up finance companies in markets where it currently has some branches.