Trump Bites A German car manufacturers 35 percent of the import tariff Threat
German carmakers fear they will bear the weight of all tariffs after Brexit on trade with British society.
BMW employs 8,000 workers in Britain to make cars Rolls Royce and Mini.
Germany's automotive industry is losing hope that trade tariffs with Britain can be avoided, despite the warnings of British Prime Minister, Theresa May, that too tough attitude on post-trade Brexit would seriously affect the European partners of the country.
Merkel can force us to withdraw profits in the UK for reasons of preventing further fragmentation of the EU, said a senior executive at a German luxury car manufacturer.
The executive, who asked not to be identified because of the subject of the sensitivity, said Brexit seems more and more likely to be a disaster for business and for German manufacturers.
BMW and the European arms of GM and Ford based in Germany, which have factories in the UK, know the trade barriers would bring large, currently incalculable costs.
Under the rules of the WTO World Trade Organization, British exports of complete vehicles could be subject to tariffs of up to 10.
Ford, the largest engine manufacturer in Britain, warned against February 7 rights on the engines before the Brexit referendum last June
The rights to the components such as gearboxes and shipped brake Britain likely vary around 3 7 average currently imposed by the EU on imports from third countries similar, according to the WTO unless a preferential agreement is struck.
Ms. May has recently promised to take Britain out of the EU single market which allows duty-free trade in order to get more control over immigration.
Meanwhile, in May pleaded for greater access to the market as possible, but German Chancellor Angela Merkel said that London should not get an agreement that attractive Brexit mightencourage other departures.
Civitas think tank estimates that if Britain left the EU without a trade agreement, the German car exporters pay August 1 billion in tariffs, almost half total 3 9 billion by companies based in the face EU.
Vehicles built in the United Kingdom and parts, on the other hand, would be affected by the duties of the order of 1 3 billion, according to the group.
But the German car owners are not willing to undermine Merkel's stance German Chancellor recently reaffirmed that EU governments would not negotiate conditions Brexit London sparked Article 50 starting irreversible process, adding that business leaders should exercise similar restraint.
This sentiment was quickly picked up by Matthias Wissmann, pressure influential leader of the German automotive industry VDA.
Everything must be done to allow the free flow of goods and services, he told reporters But there is a clear priority, we must stand together among the 27 EU Member States.
The counterpart of the SMMT Wissmann group of the British car industry has also warned British lawmakers as BMW, Daimler and VW can not push too hard for free trade.
German carmakers see Europe as more important than the UK market, SMMT Chief Mike Hawes told a parliamentary committee in January they align with what is best for Germany.
BMW is in the region of 8,000 workers in Britain, including in its factories which export about 2 4 billion vehicles and engines, including a large majority of cars Mini and Rolls-Royce assembled there.
Ford, who warned against tariffs, builds engines in Dagenham and Bridgend vehicles assembled in continental Europe GM built Opel Vauxhall Astra on the west coast of Britain and expected Brexit having wiped 400 million in 2016 results.
We are worried, said a director at the German unit of amajor global automaker I do not expect there will specialdeals for the entire industry.
Business functions on components, which can cross the Channel several times before a vehicle is assembled, it would upset the costly supply chain to avoid a mixture of rights.
Billets from continental Europe are machined engine blocks at the BMW plant in Hams Hall near Birmingham Many are then shipped to Germany and equipped cars for the UK.
Overall, the British car factories buy 59 of their components abroad, and two thirds of those of the EU, said the SMMT Even when the Channel supply chains remained viable formalities would hurt border zones delivery, increased storage costs and, ultimately, the consumer price.
Components manufactured locally would become more attractive to British cars built, but assembly plants in the United Kingdom may find it more difficult to win new vehicle programs in the first place.
Investing in an assembly line for the UK alone-rather than the export market - becomes viable over an annual production of about 150,000 vehicles, industry experts explain.
For many models, Exane BNP analyst Dominic O Brien said, the UK market is not necessarily large enough to support its own factory dedicated Again, consumer choice and prices suffer.
Some German carmakers were more vocal in urging Britain to give ground, emphasizing their commitment to freedom of movement of EU workers.
Not only free trade but also cross-border employment opportunities are proven benefits for companies, BMW said.
German car companies fear the worst rates postBrexit, German businesses fear.