Car Industry Says EU 'Best For Business'

Three quarters of Britain's car makers and dealers back remaining in the EU according to a poll by an industry body.

The figures came as it was revealed that that the boss of Rolls-Royce motor cars had written to all its workers in Britain warning them that a Brexit could mean higher costs and prices and affect the firm's "employment base".

But elsewhere there was a boost for the "leave" campaign as bosses of more than 200 small firms signed an open letter calling for the UK to quit the EU.

The head of the British Chambers of Commerce, John Longworth, also entered the debate stating his belief that the UK's future could be brighter outside the union as the Prime Ministers reforms - agreed in Brussels - did not go far enough.

A survey by ComRes for the Society of Motor Manufacturers and Traders (SMMT) showed 77% think a "remain" vote in June's referendum will be best for business.

Only 9% thought quitting the EU would be best, with 14% uncertain. Larger car companies were more in favour of remaining - at 88% - than smaller businesses, at 73%. The poll was carried out in January and February over a five-week period.

SMMT chief executive Mike Hawes said: "The message from UK automotive is clear - being in Europe is vital for the future of this industry and to secure jobs, investment and growth.

"UK Automotive is thriving, with record car exports, new registrations and the highest manufacturing levels for a decade.

"Our industry supports 800,000 jobs across the UK and contributes more than £15bn to the UK economy - our members have clearly stated that pulling out of Europe could jeopardise this."

Meanwhile, details of the letter from Rolls-Royce chief executive Torsten Muller-Otvos to Rolls-Royce staff were leaked to the Guardian.

Versions of the message have been circulated to around 8,000 workers at the firm and other subsidiaries of the BMW Group.

In the letter, Mr Muller-Otvos stressed the importance of free trade for the motor business.

He said: "Tariff barriers would mean higher costs and higher prices and we cannot assume that the UK would be granted free trade with Europe from outside the EU.

"Our employment base could also be affected, with skilled men and women from most EU countries included in the 30 nationalities currently represented at the home of Rolls-Royce here at Goodwood."

Meanwhile the pro "leave" letter, coordinated by the Leave.EU campaign, said small and medium-sized enterprise were burdened by a "constant diet of unnecessary regulations" from Brussels which raise costs, cut profits and force up prices for consumers.

Speaking at the BCC (Taiwan OTC: 8325.TWO - news) 's annual conference, Mr Longworth argued the UK faced "a choice between the devil and the deep blue sea" over Europe - either staying in an "essentially" unreformed EU or facing uncertainty and disruption if it leaves (Other OTC: UBGXF - news) .