Brexit News: 100,000 jobs likely to be jeopardized in Germany if car exports collapse | World | New



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The Halle Institute for Economic Research said the manufacturing sector would be particularly vulnerable because of uncertainties surrounding future trading relationships. Germany has sold 770,000 vehicles in the UK in 2017, with 15,000 jobs being dependent on this lucrative trading area. The industry owns the world's third-largest car production and fourth-largest total motor vehicle production.

In 2017, the German sector had an annual output of six million and a share of 31.5% of the European Union.

The study predicted that the German city of Wolfsburg, seat of Volkswagen, would suffer the most from a collapse of exports if Britain collapsed out of the European Union without an agreement in place .

Five hundred jobs – 0.4% of the active population of the German city – would be threatened.

Last year, the Volkswagen Group delivered 10.83 million vehicles to customers worldwide, an increase of about 90,000 vehicles over the previous year.

In 2017, the German sector had an annual output of six million and a share of 31.5% of the European Union.

The study predicted that the German city of Wolfsburg, seat of Volkswagen, would suffer the most from a collapse of exports if Britain collapsed out of the European Union without an agreement in place .

Five hundred jobs – 0.4% of the active population of the German city – would be threatened.

Last year, the Volkswagen Group delivered 10.83 million vehicles to customers worldwide, an increase of about 90,000 vehicles over the previous year.

Dingolfing in Bavaria would also be particularly vulnerable as it is heavily dependent on the jobs provided by the BMW automaker.

The study also revealed that German medium-sized companies, considered essential for the bloc's largest economy, valued at £ 3.1 billion, would also be exposed to the effects of a Brexit without agreement, as they export a certain amount of money. number of niche technologies.

The results, published by the German newspaper Welt am Sonntag, estimate that 612,000 jobs could be lost worldwide.

Oliver Holtemöller, one of the leading researchers in the study, said: "In no other country, the impact on total employment is as important as that. in Germany, where about 100,000 people are affected. "

Despite fears sparked by Germany, the results revealed that a "Brexit" without agreement would have a major impact on Ireland and Malta.

He said that while 0.2% of jobs could be at risk, about 1.7% of Maltese workers and 1% of Irish workers could be left unemployed if Britain and the European Union fail not to an agreement.

The Brexiters warned that the country's auto industry would press Angela Merkel for the UK to get a favorable deal because of the high risks that threaten the lucrative manufacturing sector.

However, the industry has continued to support the German Chancellor and has so far supported the government's position on Brexit.

Last month, the German car industry issued a stern warning about the huge impact on employment if Britain was unable to reach an agreement with the EU.

The German badociation VDA of the automotive industry, which includes companies like Daimler, BMW, Volkswagen and Mercedezx-Benz, said: The consequences of a non-agreement would be fatal.

"Without an orderly and practical solution for businesses, jobs in the auto industry, especially on the British side, are at stake."

BMW, which manufactures 60% of its Mini in an Oxford factory, warned: "Uncertainty is not good for business, so we need to continue to prepare for the worst case scenario, which would be a Brexit without transaction.

"We urge all concerned stakeholders to do everything in their power to establish the certainty we need so much for our business and to maintain the truly friction-free trade that underpins our international production network."

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