Manchester, Nov 25: Ford Motor Co. 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 auto giant said. In the speech he world's second-largest carmaker says every minute Britain delays adopting the euro is hurting its UK-based manufacturing operations.
Ford President and Chief Operating Officer Nick Scheele will tell 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 says in the speech.

"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," the speech says.
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 centre-left Labour 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.
Ford, which accounts for around one third of its European sales in Britain, has not shied away from the political and economic jousting over whether the UK should adopt the euro.
Ford Europe President Martin Leach said last month the company, slashing costs and restructuring operations after a group-wide $5.45 billion loss last year, was basing its forward plans in Europe on Britain joining the euro sometime between 2004-2006.
"Right now, producing in a sterling-based economy and exporting the products to a nation that deals in euros, is the equivalent of paying a tax of about 25 per cent -- an absolutely incredible penalty," Scheele says.
The comments by Ford echo those of Japan's Nissan Motor Co and France's PSA Peugeot Citroen.
Nissan has said further investment in its Sunderland plant in north east England is at risk if Britain stays out of the euro. PSA has similar concerns for its Coventry plant in central England.
Bureau Report