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German car industry will tank and devastate country’s economy if EU doesn’t give us good Brexit deal, new report claims

GERMAN car makers face a whopping £3.4billion-a-year drop in sales in the event of a ‘No Deal’ Brexit, a bombshell report reveals.

Brands like Mercedes-Benz, BMW and Audi will have to shed 14,000 jobs if the EU doesn’t strike a good trade pact with Britain, experts predict.

 The German car industry is under threat from Brexit
The German car industry is under threat from Brexit

Analysts warned Berlin that German companies face “significant damage” to their operations if tariffs are slapped on goods from next year.

Their dire prediction prompted one top politician to warn Angela Merkel she should put aside politics and reach a compromise with the UK.

German MEP Hans-Olaf Henkel told The Sun: “The automotive industry is just an example.

“After Brexit the UK will become the largest customer of the EU, ahead of the US and China.

 German MEP Hans-Olaf Henkel says the EU must offer a good Brexit deal
German MEP Hans-Olaf Henkel says the EU must offer a good Brexit deal

“That’s why it’s in the best interest of the EU to offer Britain the best trade deal possible.

“Let’s not forget, this is not a new deal between two trade regions. European and British companies have been integrated throughout the last 40 years.”

According to calculations by the consultancy firm Deloitte, published yesterday, 42,500 jobs in the German car industry are linked to trade with Britain.

Experts say a no deal Brexit, where the UK falls back to WTO trading terms, would lead to an enormous 23 per cent dip in business, shaving five per cent off the entire sector.

Dr Alexander Börsch, Chief Economist at Deloitte, warned Berlin: “A hard Brexit would cause sales of German suppliers to shrink.”

The firm’s head of automotive, Dr Thomas Schiller, added: “Barriers to trade, such as tariffs or regulations, would significantly damage supply chains.”

The calculations are based on Britain leaving the EU in March 2019 without agreement on a transitional deal.

Article source: https://www.thesun.co.uk/news/5320630/german-car-industry-will-tank-and-devastate-countrys-economy-if-eu-doesnt-give-us-good-brexit-deal-new-report-claims/

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