Ford Motor Company is paying an 'incredible penalty' for Britain's absence from the European single currency and its UK competitiveness would be eroded if the nation did not join, the car giant said today.
In the speech to the UK's top business conference, the world's second-largest car-maker says every minute Britain delays adopting the euro is hurting its UK-based manufacturing operations.
Ford President and Chief Operating Officer Nick Scheele told the Confederation of British Industry the economic case for Britain joining the euro is growing more urgent with the country 'slipping further and further behind' trade in euro-zone countries.
'At this point every minute of delay in adopting the euro is detrimental to our employees, our business partners, our customers and those people touched by our presence - as well as to Ford and to many other companies that need a stable and competitive landscape,' Scheele said.
'If nothing changes I can only see a steady erosion in the competitive position of our British operations over time - a scenario that will play out with virtually every other company that has exports or has euro-based companies as prime competitors,' he added.
Many businesses complain sterling's strength against the euro makes their exports relatively expensive and that companies within the euro zone enjoy more certainty on exchange rates.
The UK government has remained steadfast that it will only be in favour of joining the single currency block if five economic tests it has promised to assess by next June are met. A decision to join is subject to approval in a referendum.
Polls show more than half of Britons want to keep the pound and are reluctant to hand over monetary policy to European currency controllers. Many economists believe public antagonism to monetary union is likely to delay UK entry beyond 2006.
