German firms tell Brussels to avoid car crash

GERMAN business leaders have pleaded with Brussels to deliver a ‘fair Brexit deal’ amid fears they will be hit hard if Britain crashes out of the EU.

As Brussels, led by chief negotiator Michel Barnier, maintains a tough stance, some of Germany’s most successful firms have made clear their opposition to No Deal.

Responding to a poll by the Stiftung Familienunternehmen – or Foundation for Family Businesses – hundreds of companies appealed for a more business-friendly stance from EU negotiators ahead of the October 31 deadline. Among the more than 1,400 respondents was Otto Fuchs, a 110year-old family-owned business that supplies non-steel metal parts to BMW, Jaguar Land Rover and Airbus – as well as wheels for Mini cars built in the UK.

Chief executive Hinrich Mahlmann said: ‘We’re in turmoil right now and the problem is Europe is not standing together.

‘The UK market is the largest car market in Europe after Germany and if that continues to decline it would harm everybody.’ If Britain leaves the EU without a deal it will revert to World Trade Organisation rules, meaning cars crossing the border between the UK and Europe will be taxed at 10 per cent. Tariffs would also be imposed on components transported across the border.

The motor industry is particularly concerned about extra customs checks at the border and has warned delays will wreak havoc with ‘just in time’ production lines.

Rainer Kirchdorfer, a board member of Stiftung Familienunternehmen, said a Brexit extension would be better than ‘going our separate ways in an unregulated manner’.