--
 
The good, bad and ugly of Fernando Alonso's F1 career

'Fernando Alonso is one of the all-time greats', writes Egmont Sippel.

Here's why Toyota's Rush is doing so well

Toyota has apparently now completed its utter domination of the SA gravel travel market, writes Lance Branquinho.

Hard Brexit 'could cost 14 000 jobs' at German car suppliers

2018-01-11 15:41

GERMAN AUTO PARTS SUPPLIERS TO STRUGGLE: This file photo taken on October 2, 2015 shows new cars of German car maker BMW parked ready for shipping at the car terminal of the port of Bremerhaven, northwestern Germany. Image: AFP / Ingo Wagner

Frankfurt am Main - A worst-case Brexit scenario could put thousands of jobs at risk at German car parts suppliers, a study warned Thursday, as Britain grapples with navigating its complex exit from the EU.

A so-called "hard Brexit" that would see Britain leave both the single market and the customs union, could cut revenues in Germany's crucial car parts industry by up to €3.8-billion ($4.5-billion), the accounting firm Deloitte said.

As many as 14 000 jobs could be lost because the sector is so tightly entwined with the British market, the report added.

Almost 20% of car parts used in UK factories are German

The UK is the largest export market for German car suppliers in Europe, with 18% of auto parts used in British factories coming from Germany -- the home of industry giants Bosch, Continental and ZF Friedrichshafen.

"The introduction of WTO tariffs and a devaluation of the pound in case of a hard Brexit would shrink car sales and manufacturing in the UK, directly impacting German car suppliers," the report said.

Fears of an abrupt British exit from the bloc have grown as Prime Minister Theresa May struggles to make progress in talks with Brussels about a transition deal and the shape of a future trading relationship.

A separate study on Thursday, commissioned by London Mayor Sadiq Khan, found that Britain could lose nearly 500 000 jobs and some €50-billion in investment by 2030 if it crashes out of the European Union without a deal.

In a statement, Khan accused the government of a "complete lack of preparation" in assessing the impact of Brexit, and urged ministers to change their negotiating position and agree to remain in the single market and customs union.

Transition arrangements, trade and security will dominate Brexit negotiations this year before Britain leaves the bloc in March 2019. 

NEXT ON WHEELS24X
Read more on:    bosch  |  continental  |  united kingdom  |  germany  |  england  |  jobs  |  brexit

There are new stories on the homepage. Click here to see them.