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Rolls-Royce just sent an email to UK staff warning them against Brexit

Mar 3, 2016, 13:09 IST

The European Union Flag on fire.Reuters

Britons get to vote on whether the UK will stay in or leave the European Union in a referendum on June 23.

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Engine manufacturer Rolls-Royce has sent an email warning British staff that if the public voted for the UK to leave the EU - a Brexit - there are serious risks to the industry as a whole as well as what costs it would incur for the company. It also suggests there could be an adverse effect on staff.

The group also made it clear that the decision is ultimately up to the British public, but there are risks it wished to highlight.

The BBC has the email in full but here are some key excerpts:

The BMW Group believes that the UK is better as a member of the EU than it would be outside it. You will see in the media this week an open letter supporting the campaign to stay in the EU, signed by around 200 business leaders, including Member of the AG Board, Ian Robertson.

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Free trade is important for international business. Rolls-Royce Motor Cars exports motor cars throughout the EU and imports a significant number of parts through the region.

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.

When it comes to regulation, whether the UK remains inside the EU or leaves it, with Europe as the UK's largest export market by far, we would have to abide by European rules and regulations in any case.

We believe it's much better to be sat at the table when regulations are set and have a hand in their creation, rather than simply having to accept them.

Finally, we get a significant benefit from the easy movement of our people between the UK and Europe. This allows the rapid transfer of expert knowledge throughout the Rolls-Royce Motor Cars and BMW Group networks, building the skill level of our UK workforce.

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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.

This comes after almost 200 business leaders call for Brits to vote to stay in the European Union in the upcoming referendum on membership, in a letter published in The Times.

The signatories include executives at giants such as BP, Credit Suisse, BT, Vodafone, HSBC, Asda, Marks & Spencer, Airbus, AstraZeneca, BAE Systems, and Ryanair.

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