In recent days, German Industry UK (GIUK) – a group which represents a number of leading German businesses – has warned that companies such as BMW, Mercedes-Benz and Lufthansa are ‘reluctant’ to invest any further in Britain unless the UK Government can provide clarity on Brexit.
In what The Guardian describes as a “strongly worded statement” issued to the UK Government, GIUK said that German firms would like continued free access for exports to the UK – without any tariff or non-tariff barriers.
The group added that it also wants free access to the European Union (EU) for any exports from the UK.
The calls come at a turbulent time, shortly after Britain’s largest car manufacturer, Jaguar Land Rover, warned that a bad Brexit deal could have a catastrophic impact on its five-year investment plan.
Earlier this week, the group warned that an insufficient deal would put £80 billion worth of investment at risk – as well as some 40,000 UK jobs.
Similarly to GIUK, it warned that, in order to continue to invest heavily in the UK, greater certainty was needed regarding what a post-Brexit Britain might look like for large businesses and manufacturers.
“A bad Brexit deal would cost Jaguar Land Rover more than £1.2bn profit each year,” the firm’s chief executive warned.
“As a result, we would have to drastically adjust our spending profile – we have spent around £50bn in the UK in the past five years, with plans for a further £80bn more in the next five. This would be in jeopardy should we be faced with the wrong outcome.”
Bernd Atenstaedt, of GIUK, has raised very similar concerns on behalf of German business leaders.
Pressure is mounting ahead of the Cabinet’s meeting at Chequers today, which will see ministers fight-out their Brexit disagreements.