Industry leaders believe UK exit from European Union would bring losses for both image

Two of the German leaders of iconic English auto brands are lobbying for the United Kingdom to stay within the European Union, claiming to be in the interest of both parties.

Present during the Automotive News Europe Congress, the executive’s views were mirrored by the chief executive officers of Aston martin and Volvo. “I would not be very happy if Britain exited the EU. It would be bad for both sides,” said Peter Schwarzenbauer, BMW Group’s management board member that leads both BMW and Mini brands. “We are very interested in having a free exchange of goods and technology so we can prosper together,” added Ralf Speth, chief executive of Tata Motors’ British subsidiary, jaguar Land Rover. For JLR for example, 20 percent of sales are made on the European continent and there are lots of imported goods from within the EU as well. The global automakers have established global manufacturing bases in Great Britain and have billions of dollars worth of vehicles and parts moving across the border to Europe.

Thus, an exit would mean the loss of free flow of goods between the United Kingdom – a major continental economy – and the other countries in the European Union. The latest data available for the UK and Germany from their respective auto industry associations, both export at least 77 percent of all locally produced autos. And the short term trade flow deficit is seen as the least of the problems by auto executives – on the longer term more crucial is the impact of a unified EU against the other trading blocks in the West and East.

Via Automotive News Europe