General Motors' UK operation Vauxhall is firmly behind Britain remaining in the European Union.

An in-out referendum is being held on June 23 and Vauxhall chairman Rory Harvey said he was concerned an 'out' vote would involve a leap into the unknown. With GM's European operations fixed on break-even this year, he fears the instability that an exit might bring.

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Vauxhall has two factories in the UK, building commercial vehicles at Luton while Ellesmere Port is the Euorpean lead plant for the top selling Astra.

Harvey said: "Vauxhall's view is that the UK stays within the EU, we firmly believe in the free movement of people, services and goods across the region and in terms of our business we need stability.

"There is already a certain amount of nervousness over which way the vote will go – there is currently a movement of about 12% in the pound/euro exchange rate and that does cause us concern. If the vote is to leave, then how does the UK leave? There will be a lot of unravelling required.

"Stability has its advantages. As lead plant, Ellesmere Port is a training ground for other operations – we have several employees from the number two plant in Poland visiting and we need to be able to move people around with the minimum amount of bureaucracy."

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What is known, however, is that the new Astra has won the European Car of the Year award which Harvey said is "good for the product, good for Vauxhall and good for the factory". But he doesn't necessarily see that translating into a huge increase in sales.

"Of course we will use the award as a marketing tool as it reinforces customer confidence in the car," he added. He also expects the Astra to help build the take up of On Star which was introduced in Europe last year.

He said: "We are now getting vehicles through which are equipped for On Star fitment and so I expect the take-up to increase. Customers are particularly interested in the emergency alert system and the in-car wifi that the system brings. Connectivity is all important now and will be more so in the future."

It's likely, he added, that one day companies will not necessarily have halo products, but halo features or technologies, to attract people to brands but there are risks and challenges from introducing more and more non-propriety features and software.

"The more touchpoints you have the more difficult it is to keep control of the brand."