Audi’s full throttle backing for Britain
We love selling cars to the UK, says exec – so stop stalling on Brexit talks and let’s strike deal
THE head of one of Germany’s biggest car makers yesterday called for a tariff-free trade deal with Britain.
In a major intervention, Audi chairman Rupert Stadler said he wanted the EU to get on with striking a trade deal with Britain that would preserve existing markets on both sides of the Channel.
Asked if he was concerned about the impact on sales in the UK and the knock-on effect on German jobs if the EU imposed punitive tariffs on trade with the UK post-Brexit, Mr Stadler said: ‘We don’t want tariffs. I’m a big fan of fair trade and free trade.’
Speaking at the Shenzhen motor show in China, he added: ‘Great Britain is a big market for Audi. It’s a very important market for us. We love to sell cars to Great Britain.’
Mr Stadler said there would be no winners if a trade deal wasn’t struck between the EU and the UK, and that it would ‘cost jobs’ in both Germany and Britain. The issue of tariffs was on everyone’s minds, but was still ‘hypothetical’, he said, adding that he hoped a deal would be done, but it was down to the respective governments.
Mr Stadler’s intervention will pile pressure on German Chancellor Angela Merkel to push Brussels to stop stalling on a trade deal with Britain. Prominent Eurosceptic Jacob Rees-Mogg welcomed his comments, and said it was clear that the intransigent attitude displayed by EU chief negotiator Michel Barnier was out of step with the interests of member states such Germany.
Tory MP Mr Rees-Mogg said: ‘These comments from Audi are very important because Angela Merkel has a good track record of backing Germany’s industrial interests. Barnier has got a rather dogin-a-manger attitude, but this is not what European business wants. The European Commission’s interests and those of the member states have always been divergent and are becoming more so.
‘The unity of the EU is fraying at the edges – the question is whether things will move in time.’
Mr Stadler’s comments reflect wider concern in the German car industry that the sector could be hit by tariffs if trade talks fail – at a time when Donald Trump is also hinting at extending his trade war to the car sector.
The UK is Audi’s fourth largest market after China, Germany and the US and boasts sales of more than 170,000 car sales a year.
In March, Porsche executive Lutz Meschke also said it was in the EU’s interests to forge a free-trade deal with Britain.
He said failure to strike a deal would ‘put German jobs at risk’, adding: ‘If the EU decides to stay completely negative in the negotiations, it will be very difficult to keep the price level for imports of goods to the UK at a stable level. You will have customs tariffs. It will make things difficult.’
Mr Stadler’s comments came as European ports told MPs they could have efficient new customs systems up and running in time for the UK’s exit from the EU – provided ministers get on with making a decision on which model they want.
Joachim Coens, chief executive officer of the port of Zeebrugge, said it was vital that an agreement on future customs arrangements was in place by the time the pro- posed transition period kicks in next March. He said: ‘The transition period of two years is fine, provided we know from the beginning of that transition period what we have to do.’
He also played down suggestions that a new customs system would result in catastrophic extra costs for business, saying: ‘I believe the costs are not the big issue.’
Benoit Rochet, deputy chief executive officers at the port of Calais, also said he wanted more detail from the British Government on its preferred option. Asked repeatedly whether Calais would be ready in time, he replied: ‘We’ll have to be. Time is running, but we will not have a choice, we will have to be.’
John Keefe, director of public affairs at Getlink, which runs the Channel Tunnel, said they were still waiting for clarity from the Government. ‘In order to make our contingency planning, we need to have a direction to go in,’ he added.
Meanwhile, HMRC chief Jon Thompson faced criticism from MPs over his claim last month that the Government’s new customs plans could cost business £20billion a year.
Dover MP Charlie Elphicke said most industry experts, including one study used by HMRC, predicted additional costs would add just 1 per cent – a fifth of the amount claimed by HMRC. ‘You do seem quite out of line with everyone else,’ he told Mr Thompson.
Mr Thompson acknowledged the figure was ‘ speculative’, but insisted it was his department’s best estimate.