The chief executive of Rolls-Royce Motor Cars, which is owned by BMW, has written to all its workers in Britain to warn that exit from the European Union would drive up costs and prices and could affect the company’s “employment base”.

The letter, leaked to the Guardian, is one of six sent by the bosses of each of BMW’s British companies, including MINI, to their staff each warning of the dangers of UK withdrawal. It comes after the government warned that car-makers would be among those badly hit by Brexit in a civil service report.

Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, told staff that the decision about whether to remain in the EU would be down to British voters.

But he added: “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.

“For BMW Group, more than half of MINIs built and virtually all the engines and components made in the UK are exported to the EU, with over 150,000 new cars and many hundreds of thousands of parts imported from Europe each year.

“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.”

Out campaigners will be angry about this intervention by BMW, asking why a German multinational is wading into the debate over Britain’s future in the EU.



Both Rolls-Royce and BMW admitted that emails and letters had been sent out to 8,000 employees, including workers in Goodwood, West Sussex, and Oxford. The parent and its subsidiary insisted that they were not trying to influence their staff when it came to the June referendum.

All letters said that Britain would have to abide by EU regulation rules whatever the outcome of the referendum. “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.”



Richard Carter, director of communications at Rolls-Royce, said he believed the letter was justified, arguing that it was the company’s duty to outline its position to employees and tell them the risks of Brexit. “Once the British people have decided we will have to judge that decision from a business point of view,” he said, arguing that Brexit would have a huge impact on the company.

Graham Biggs, of BMW group, added that the bosses were simply setting out the company’s position because many staff had asked for it. BMW was among the signatories of a business letter – organised by government – in favour of EU membership.

Nick Herbert, the chairman of Conservative In – the party’s pro-EU campaign group – said that Rolls-Royce Motor Cars was one of the most important employers in West Sussex where he is an MP. “The calm and sober statements of the facts by companies like Rolls-Royce remind us of the advantages of being in the single market. The more I hear things like this, the more sure I am that Britain will be better off remaining in a reformed EU,” he said.

Paul Stephenson, a spokesman for Vote Leave, pointed out that a number of car companies – including Toyota, Vauxhall, Bentley and Nissan – had said they would continue to invest in the UK. He said the “personal views of chief executives” did not represent the opinions of employees or shareholders. “Big foreign, multinational companies like the EU because they spend millions lobbying it in order to stitch up the rules in their favour – forcing smaller players out of business.”

The Green party MP Caroline Lucas will make the “peace argument” against Brexit on Thursday, warning that EU membership is Britain’s best defence against the risk of Europe descending into war. “Europe is not, historically, a very peaceful place,” she will say, in a lecture at the London School of Economics. “It would be sheer folly to think that armed conflict cannot return. We cannot know what dangers lie ahead. But we can be sure that a strong and stable European Union, with Britain as an active and positive participant, provides the surest guarantee of our national security.”

Meanwhile Boris Johnson, a Tory MP and one of the most high-profile outers, will be taken on by his own brother. Jo Johnson, the science minister, will say: “In this referendum campaign, it is vital that we have an evidence-based debate and properly informed choice. The facts matter. And few value evidence more than scientists. That’s why we should take seriously the surveys showing nine out of 10 agree EU membership benefits UK science and engineering.” He said Britain could “survive and prosper” outside the EU but challenged those who want to leave to explain how the levels of investment will be maintained.