BMW letter to Rolls-Royce employees on Britain's EU referendum

LONDON (Reuters) - Following is the text of a letter from Rolls-Royce CEO Torsten Muller-Otvos to employees on Britain's EU referendum.

A copy of the letter was supplied by the company.

"Dear colleagues,

"As the debate around the referendum to decide the future of the UK's European Union membership increases, it is an appropriate time to outline the Rolls-Royce Motor Cars and BMW Group position.

"The decision on whether to stay in the EU or not is for British voters to decide on in June. The BMW Group and Rolls-Royce Motor Cars believe that the UK is better as a member of the EU than it would be outside it. You will see in the media today 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.

"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.

"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 Rolls-Royce Motor Cars and BMW Group networks, building the skill level of our UK workforce. 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.

"The debate around this subject will undoubtedly continue to build as we near the UK referendum on Thursday 23 June 2016. May I take this opportunity to remind you that all media enquiries are handled by our Corporate Communications team, and should you be approached for comment you should refer the enquiry directly to our spokespeople in UR-K.

"I hope this outline is of interest.

"Kind regards,

Torsten Müller-Ötvös

Chief Executive Officer"

(Reporting by Costas Pitas; editing by Guy Faulconbridge)