Abstract
In this paper, Michael McDermott highlights Ford of Britain and its changing role in Ford of Europe's operations. A review of the literature on foreign direct investment provides a framework for evaluating Ford Motor Company's current position and future strategy in Europe. This suggests that the company is in decline and in particular, that Ford of Britain has reached a stage where foreign divestment is likely: the Iberian peninsula is emerging as an attractive strategic alternative. The author concludes that, while the UK is losing its strategic importance as a market and a production base for Ford of Europe, any key decision to divest by the parent company is likely to involve lengthy analysis and therefore give time for public policy-makers to consider possible safeguards.
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