Volkswagen Warns of Insecurity and Uncertainty Over Brexit Deal Rejection

The divorce deal between Great Britain and the European Union, which would have allowed the Kingdom to leave with at least some measure of control in March, was rejected on Tuesday by the British parliament in a categorical manner.
Brexit rejection prompts Volkswagen into releasing a statement 1 photo
Photo: Volkswagen
What the rejection of the deal means for Europeans no one really knows. Some prepare for a no-deal exit, like France, others are calling for a second Brexit referendum, as do some British lawmakers, while others, like EU’s Jean-Claude Juncker, have simply asked the Brits to make up their minds already.

As the dust created by Tuesday’s vote begins to settle, pressure increases on Theresa May’s cabinet, now coming coming from a variety of industries, not only from political actors.

On Wednesday, Volkswagen took point for the auto industry and released a statement regarding the rejection of the Brexit deal, saying that this outcome could have the effect of throwing the company in a “period of insecurity and planning uncertainty.”

“Like the rest of the industrial sector, we need comprehensive clarity on the shape of future relations between the United Kingdom and the European Union very quickly,” Volkswagen says.

“Any further delay in the Brexit decision-making process poses a risk to investments and jobs in the automotive industry which relies on long-term planning security with development cycles of up to five years.”

So, what is Volkswagen asking? Even though it regrets the outcome of Tuesday’s vote, it would matter little for VW if Britain leaves or stays, as long as the country continues to have open market access and clear customs procedures with the rest of Europe.

Leaving the EU without a deal would however revert cross-border relations to the long-forgotten era of control points, but could also mean the UK might need to apply import taxes for goods coming from across the Channel.

For the German carmaking group, Britain is the second largest market, after Germany. Last year VW sold there over half a million cars across its brands.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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