Ford Credit Europe (FCE), a wholly owned indirect subsidiary of Ford can now continue to service business customers, dealers, fleets and retailers, in Britain and other countries in Europe.
A spokesman for Ford stated, its application to set up a bank in German has been approved by the European Central Bank. The move is part of its broader strategy to migrate Brexit-related risks, if any.
“The European Central Bank has approved Ford Credit Europe (FCE) Bank’s application for a banking license in Germany. We expect to establish this bank in the second half 2018,” said Ford’s spokesman.
FCE had applied for a German banking license which will run alongside its existing British one as part of a strategy to mitigate risks revolving around uncertainty of Britain receiving EU’s passporting rights, which allows financial firms to serve the Eurozone from a single base.
FCE has clarified that it would keep its headquarters in Britain and that this plan does not include any job losses or significant changes to where employees are based.
Incidentally, FCE is a wholly owned indirect subsidiary of Ford; it provides financial services to business customers, dealers, fleets and retailers, in Britain and eleven other countries in Europe.