German carmakers warn hard Brexit would be 'fatal'

Economy 16:48 16.01.2019

German carmakers on Wednesday warned of fatal consequences if Britain left the European Union without a divorce deal, predicting job losses in Britain and Europe and urging lawmakers to redouble efforts to ensure tariff-free trade can continue.

Prime Minister Theresa May’s deal to leave the EU suffered an overwhelming defeat in parliament on Tuesday, leaving the country’s future in limbo and manufacturers bracing for their “worst-case scenario”, a no-deal Brexit.

Britain would suffer most if it lost free trade with European markets since 80 percent of vehicles assembled in the country are exported, mostly to the European Union. But for Germany the stakes are also high.

In 2016, Britain was the largest single export market for German manufacturers, who sold 800,000 new cars there, or 20 percent of their overall global exports. Fewer cars are exported to China and U.S. because German carmakers have factories there.

“The consequences of a ‘no deal’ would be fatal,” German auto industry association VDA said after the vote.

“Without an orderly and practical solution for business, jobs in the car industry, particularly on the British side, are on the line.”

BMW, Volkswagen and Daimler, parent company of Mercedes-Benz, urged British politicians to create clarity over Brexit and ensure tariff-free trade can continue.

“Uncertainty is not good for business... we must therefore continue to prepare for the worst-case scenario, which is what a no-deal Brexit would represent,” BMW Group said.

“We strongly urge all relevant stakeholders to do everything possible in order to establish much needed certainty for our business and to maintain the truly frictionless trade on which our international production network is based,” BMW said.

BMW, which builds 60 percent of its Mini vehicles at a plant in Oxford, southern England, relies heavily on components imported from BMW’s German plants. It has beefed up its logistics to include air freight options.

Tariffs are a problem for low-margin high volume automakers like Toyota, which has a factory in Derby, and Nissan with operations in Sunderland but also for Volkswagen which has no British factory and relies on imports to serve U.K. customers.

“We took note of the results of the vote in Britain’s parliament with regret,” Volkswagen said.

“It represents a further phase of uncertainty and hampers our ability to plan ahead. We and the entire industry need clarity about the nature of relations between Britain and the European Union. Every further delay in the Brexit decision-making process puts investment and jobs at risk,” VW said.

Daimler said it aimed to ensure goods can continue to enter and exit the U.K. in a timely manner after Brexit.

IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

US-Iran talks may take place next week
12:30 08.07.2025
Pentagon confirms US plans to send additional 'defensive weapons' to Kiev
12:15 08.07.2025
Trump sets 25% tariffs on Japan and South Korea
12:00 08.07.2025
Israeli army says 5 soldiers killed, 14 injured in northern Gaza
11:45 08.07.2025
Brazil’s president sounds alarm over multilateralism crisis, condemns Gaza genocide at BRICS summit
11:30 08.07.2025
Protest Held in London Backing Pro-Palestine March Organizers Accused of Offences
11:15 08.07.2025
Japan to make diplomatic efforts to ensure implementation of Israel-Iran ceasefire: Top diplomat
11:00 08.07.2025
Trump Holds Talks with Netanyahu at the White House
10:45 08.07.2025
Trump says US has 'scheduled Iran talks'
10:30 08.07.2025
Trump says US will supply weapons to Ukraine
10:15 08.07.2025
Priorities of Azerbaijan's international development policy discussed
10:00 08.07.2025
US to impose 25% duties on imports from Kazakhstan from August
09:45 08.07.2025
Plans for border delimitation, demarcation with Armenia discussed in Baku
09:30 08.07.2025
Israel wants to coordinate with US on possibility of new strikes on Iran
09:15 08.07.2025
Netanyahu nominates Trump for Nobel Peace Prize
09:00 08.07.2025
Geno rejects signing of 38-year-old Jamie Vardy
21:00 07.07.2025
Gaza death toll passes 57,500 as Israeli attacks continue unabated
20:45 07.07.2025
Russian emergencies minister arrives in Baku
20:25 07.07.2025
Trump due to meet Netanyahu at White House
20:15 07.07.2025
Russia attacks recruitment centers in Ukraine's Kharkiv, Zaporizhzhia
20:00 07.07.2025
Pezeshkian says Israel attempted assassination against him
19:45 07.07.2025
Iran has military capability to strike Israel daily for 2 years, IRGC adviser says
19:20 07.07.2025
US envoy says ‘satisfied’ with Lebanese response on roadmap to disarm Hezbollah
19:00 07.07.2025
Peskov: Russia, Azerbaijan should remain close partners, allies
18:45 07.07.2025
The Gulf Observer: Armenians' destruction of Azerbaijan's cultural heritage - vandalism against all humanity
18:30 07.07.2025
Official: Nearly 1M foreigners arrived in Azerbaijan in 5 months of 2025
18:15 07.07.2025
Chief of General Staff of Azerbaijan Army visits Saudi Arabia
18:00 07.07.2025
Israeli PM approved Yemen airstrikes during his flight to US
17:45 07.07.2025
Expert: ECO Summit in Khankendi confirmed member countries' desire for inclusive, multipolar world
17:30 07.07.2025
AZAL introduces new online service
17:15 07.07.2025
Poland imposes checks on German and Lithuanian borders amid migration fears
17:00 07.07.2025
Saudi Arabia raises August oil prices for Asia, Europe buyers
16:45 07.07.2025
EU Reporter: Karabakh region became platform for int'l forums
16:15 07.07.2025
Georgian PM says direct foreign interference in democratic elections failed
16:00 07.07.2025
Typhoon Danas kills two in Taiwan, injures over 500
15:45 07.07.2025
'Coalition of the Willing' may fall apart over Starmer-Macron conflict
15:30 07.07.2025
Former Adjara head hospitalized with gunshot wound in Georgia
15:15 07.07.2025
Scientists reveal how caffeine slows down aging
15:00 07.07.2025
Thailand to offer US more trade concessions to avert 36% tariff
14:45 07.07.2025
Putin dismisses transport minister
14:30 07.07.2025
Hamısı