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German auto industry warns Brexit could lead to production shift

Published 23/06/2016, 12:17
© Reuters. Robots connect side parts on Audi A3 light weight construction chassis at production line of German car manufacturer's plant in Ingolstadt
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FRANKFURT (Reuters) - Germany's auto industry on Thursday warned that a potential trade dispute between Europe and Britain in the aftermath of a Brexit could put British production sites at risk.

"We all hope the vote is in favour of remain. The German auto industry alone has 100 production sites in Britain including suppliers," Matthias Wissmann, president of Germany's Auto Industry Association VDA, told a news conference on Thursday.

"If there were a trade conflict between Britain and the European Union, the damage would be enormous for everybody," Wissmann explained, saying he hoped for a "remain" vote.

"It would be a serious setback for the industry and would surely result in some production sites relocating."

The VDA represents companies including BMW (DE:BMWG), Daimler (DE:DAIGn), Bosch [ROBG.UL], Continental (DE:CONG) and Volkswagen (DE:VOWG_p).

© Reuters. Robots connect side parts on Audi A3 light weight construction chassis at production line of German car manufacturer's plant in Ingolstadt

"We would have enormous challenges to overcome if Brexit wins. I hope common sense prevails," Wissmann said.

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