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Workers And Automakers Will Lose If UK Leaves EU, Analysts Warn

Brexit, the referendum in which UK citizens are requested to decide whether to leave the EU or stay, could have massive consequences on the automotive industry if Brits choose to leave.
Great Britain and EU 1 photo
According to analysts and industry leaders, automakers with factories in the United Kingdom could lose millions in profits, and employees risk their livelihood because of potential job cuts.

Thousands of jobs in the automotive sector could be in jeopardy, as Great Britain leaving the EU could lead to closing factories and worker layoffs.

The problem with Brexit, the digital abbreviation of a British exit, is that it would lead to limiting trade and travel. Since some employees need to travel through EU countries to do their job, they will have to wait in longer lines, for non-EU countries, to be able to travel.

The biggest problem will be freight, including automobiles, where export duties will be applied to vehicles made in the UK.

Meanwhile, cars imported into the country will also suffer from potential import duties, thus limiting consumer choice because some models will become more expensive than they are today, without any real increase in value.

As Detroit Free Press reports, about 80% of the vehicles assembled in Great Britain in 2015 were exported. Out of the 1.5 million units assembled in the UK, 58% were exported to other European countries. If the UK decides to leave the EU, the European Union could impose tariffs of up to 10% on the exported cars. At the same time, exported auto parts could face taxes of 2.7%.

In the case of Jaguar Land Rover, the biggest automaker in the UK, annual profit could drop by one billion pounds, the rough equivalent of $1.47 billion, if supporters of “Vote Leave” win. American corporations like General Motors would also suffer.

The United Kingdom is GM’s fourth largest global market, and the largest one in the Old Continent. Ford also has facilities in the UK, as does Toyota, Honda, and Nissan, among others. Local brands like MINI, Rolls-Royce, Bentley, Jaguar, Land Rover, and Range Rover will also suffer.

 
 
 
 
 

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