Ford calls for UK euro entry

Ford says the pound is causing massive problems for exporters

A senior executive at Ford has called for the UK to join the euro and claims that the pound's high value against the single currency is causing massive problems for exporters.

"We would warmly welcome [Britain's] entry, but only if the pound was at a lower level," Wolfgang Reitzle, head of the Ford's Premier Automotive Group, told German business newspaper Handelsblatt.

Ford has consistently argued that the UK should join the euro. And earlier this year, Europe chairman Nick Scheele said the company's strategic planning was based on Britain becoming part of the euro zone.

Mr Reitzle has a particular interest in reducing the currency risk between the pound and euro because his division produces Ford's luxury brands, including Jaguar, Aston Martin and Land Rover, all of which are produced in the UK.

'Massive burden'

Reitzle said the pound's current high value against the euro was creating a "massive burden" for Britain's manufacturing and exporting industry.

Reitzle: 'We would warmly welcome (Britain's) entry'

The autoparts industry has been severely affected by the high level of the pound against the euro as car makers have switched to importing parts from cheaper suppliers in Europe.

Ford is being forced to supply more parts from the euro zone in a bid to offset the exchange rate, Mr Reitzle said.

The company has just invested about £300m ($424.4m) to upgrade its former Escort plant at Halewood in northwest England, where production of its new Jaguar X-type begins officially on Friday.