Automobile manufacturer Ford plans to set up a bank in Germany in the second half of this year as a part of its post-Brexit strategy to mitigate all associated business risks.
Ford Credit Europe (FCE), a subsidiary of Ford, has applied for the banking licence last year that would enable it to provide passporting services.
Passporting services enable the financial entities to serve across all European Union member countries from a single base.
The company anticipates that post Brexit, passporting will become highly uncertain.
FCE said that it will continue to keep its headquarters in UK, while the German bank will operate as its subsidiary.
It also stated that the plan does not include any loss of jobs or any significant changes to where the employees are based.
The FCE’s subsidiaries in the Czech Republic, Switzerland and Hungary will continue to operate using their current licences.
FCE provides financial services to dealers, retail, fleet and business customers in the UK and eleven other countries in the Europe.
The entity has also assured that it will continue to operate in the UK and serve the British dealers and customers.