Carmakers Urge U.K. Not to Leave the EU

Daimler, Ford and Nissan concur with Prime Minister David Cameron that the U.K. should not quit the European Union. Britons will vote in a referendum on the question on June 23.

The U.K. exported 77% of its output—more than 1.2 million vehicles—last year. About 58% of exports were to the EU, according to the Society of Motor Manufacturers and Traders.

Opinion polls indicate Britons are evenly split about whether or not the U.K. should remain in the EU. Proponents say an exit, nicknamed Brexit, would restore full control of Britain’s borders, protect jobs and eliminate billions of pounds in EU membership fees.

They also say the EU is less critical to British trade than it was when the U.K. joined the union in 1973. They note that the U.K. could negotiate a new trade agreement with the EU, as Canada has done, or negotiate agreements by economic sector, as Switzerland has done.

Those who support continued membership, which includes big business, say belonging to the EU bolsters the British economy and ensures a stable business climate. They warn it would take years to negotiate a new trade pact with the EU.

Proponents of remaining also believe an “amicable divorce” with the EU is unlikely. Instead, they envision years of contentious negotiations over trade and cite the possibility of a trade war.