A leaked letter from the heads of six automotive manufacturers owned by parent company BMW has warned staff of the risks posed to the car industry if the UK leaves the EU.
The letter from BMW Group top brass to employees of Rolls-Royce, which is owned by the Bavarian giant, was leaked to the Guardian and spoke of “higher costs and higher prices” in the event of a Brexit.
In the letter, BMW executive and Rolls-Royce CEO Torsten Muller-Otvos claimed that if Britain left the European Union it would inevitably mean the firm’s “employment base could also be affected”.
"Sober statement of facts"
Similar letters were reportedly sent by executives to other BMW-owned manufacturers like MINI, and supporters of the EU praised BMW for its “sober statement of facts”. However, Vote Leave proponents dismissed it as “the personal views of chief executives”.
Mr Muller-Otvos wrote: “Free trade is important for international business. Rolls-Royce Motor Cars exports motor cars throughout the EU and imports a significant number of parts through the region.
“For BMW Group, more than half of MINIs built and virtually all the engines and components made in the UK are exported to the EU, with over 150,000 new cars and many hundreds of thousands of parts imported from Europe each year.
Effect on employment
“Tariff barriers would mean higher costs and higher prices and we cannot assume that the UK would be granted free trade with Europe from outside the EU.”
The Rolls-Royce chief also expressed concern about the company’s ability to attract employees from outside the UK in the event of a Brexit, with the marque currently employing workers from over 30 nationalities.
Speaking to the Guardian, chairman of the Conservative In group Nick Herbert said: “The calm and sober statements of the facts by companies like Rolls-Royce remind us of the advantages of being in the single market.
Criticism from Vote Leave group
“The more I hear things like this, the more sure I am that Britain will be better off remaining in a reformed EU.”
However, Paul Stephenson, spokesman for Vote Leave, said that the personal views of BMW’s chief executives weren’t necessarily shared by either their staff or their shareholders.
“Big foreign, multinational companies like the EU because they spend millions lobbying it in order to stitch up the rules in their favour – forcing smaller players out of business.”
