Executives at Asian car makers tell Reuters they could slow investment in Britain or even suspend it after the country voted to leave the European Union. As Ryan Brooks reports that may be unwelcome news for the 800,000 people who work in the auto sector.
Asian car makers could hit the brakes after Brexit... ...Toyota and Nissan among many fretting about uncertainty ahead... Warning they may slow down their investments in UK factories or even suspend them if Britain leaves the EU. That's an ominous news in a country where 800,000 people work in the auto sector. (SOUNDBITE) (English) REUTERS CORRESPONDENT, NORI SHIROUZU, SAYING: "They would probably look for a cheaper place to produce- so if you're going to sell cars in the EU, most likely they're going to want to produce those cars within the EU. UK not being part of the EU means that they might lose production base there to the EU." Relocating from Britain to Europe would be a long term project for Asian automakers. In the near term there is another issue to worry about - tarriffs Right now most of the vehicles made in the UK are exported to and sold in Europe duty free Toyota says under whatever trade deal gets hammered out after a Brexit- -any new trade duties would significantly hit their bottom line. (SOUNDBITE) (English) REUTERS CORRESPONDENT, NORI SHIROUZU, SAYING: "Many auto makers think that there's going to be a 10 percent duty on British goods being exported to the EU. So if that happens, there's going to be a higher cost, either passed on to customers or somebody would have to absorb that higher cost themselves." In the short term, Asian car makers say they'll hold back on new investment in the UK That could mean no new car models rolling off the factory floors in Britain... With a worrying knock on effect when it comes to jobs.