Brexit news: No-deal could put 100,000 JOBS AT RISK in Germany if car exports COLLAPSE | World | News

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

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

The study has forecasted the Germany city Wolfsburg, home to Volkswagen, would suffer the most from a collapse in exports in the event of Britain tumbling out of the EU without an agreement in place.

Five hundred jobs – 0.4 percent of the workforce in the German city – would be under threat.

Last year, the Volkswagen Group delivered 10.83 million vehicles to customers around the world – up by around 90,000 vehicles from the year before.

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

The study has forecasted the Germany city Wolfsburg, home to Volkswagen, would suffer the most from a collapse in exports in the event of Britain tumbling out of the EU without an agreement in place.

Five hundred jobs – 0.4 percent of the workforce in the German city – would be under threat.

Last year, the Volkswagen Group delivered 10.83 million vehicles to customers around the world – up by around 90,000 vehicles from the year before.

Dingolfing in Bavaria would also be particularly vulnerable as it relies heavily on jobs provided by car manufacturer BMW.

The study also revealed Germany’s medium-sized companies, seen as pivotal to the bloc’s largest economy valued at £3.1trillion, would also be exposed to the impacts from a no-deal Brexit as these companies export a number of niche technologies.

The findings, published by Germany newspaper Welt am Sonntag, estimated 612,000 jobs could be lost around the world.

Oliver Holtemöller, a lead researcher in the study, said: “In no other country is the effect on total employment as great as in Germany, where around 100,000 people are affected.”

But despite the fears for Germany, the findings revealed a no-deal Brexit would impact Ireland and Malta most.

It said that while 0.2 of jobs could be at risk, around 1.7 percent of Maltese and one percent of Irish workers could be left unemployed if Britain and the EU fail to agree on a deal.

Brexiters have warned the the country’s car industry will put pressure on Angela Merkel to ensure the UK gets a favourable deal due to the high risk threatening the lucrative manufacturing sector.

But the industry has continued to throw its support behind the German Chancellor and has so far supported the Government’s Brexit stance.

Last month, the German car industry issued a stark warning over the huge impact on jobs if Britain is unable to strike a settlement deal with the EU.

German auto industry association VDA, which represents the likes of BMW, Volkswagen and Mercedezx-Benz parent Daimler, said: The consequences of a no deal would be fatal.

“Without an orderly and practical solution for business, jobs in the car industry, particularly on the British side, are on the line.”

BMW, which builds 60 percent of its Mini cars at a plant in Oxford, warned: “Uncertainty is not good for business. We must therefore continue to prepare for the worst-case scenario, which is what a no-deal Brexit would represent.

“We strongly urge all relevant stakeholders to do everything possible in order to establish much needed certainty for our business and to maintain the truly frictionless trade on which our international production network is based.”



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