Mexican Media Brands
“Hard” Brexit Will Prompt Mini Production Cut
BMW AG says it will drop a production shift at its Mini small-car plant in Oxford, England, if the U.K. exits the European Union next month without a new trade deal.
#labor
Share
BMW AG says it will drop a production shift at its Mini small-car plant in Oxford, England, if the U.K. ends up exiting the European Union next month without a new trade deal.
Chief Financial Officer Nicolas Peter tells reporters that a “hard” Brexit would create new tariffs on cars and parts, forcing BMW to raise prices, which presumably would hurt sales.
Peter also says that suspending production entirely for the first two days after Brexit would help BMW avoid logistics problems. Carmakers in the U.K. have warned that a no-deal exit would at least temporarily disrupt the extensive supply chains that bind their British operations to suppliers and markets outside England.
Peter notes that BMW has created a €300 million ($331 million) fund to handle short-term Brexit costs.
RELATED CONTENT
-
Denmark, 10 Other EU Members Urge Piston Ban
Denmark and 10 other member nations of the European Union have urged the region to allow them to end gasoline and diesel engine sales by 2030.
-
Young Auto Engineers Say Their Employers Don’t Measure Up
Only one-third of U.S. automotive engineers below the age of 36 agree that their work experience matches the way their employers’ portray themselves publicly, according to new research.
-
GM, PSA Execs Rush to Build Support for Opel Sale
Top executives from General Motors Co. and PSA Group are scrambling to build support among alarmed European government and labor leaders for a plan to integrate GM’s Opel unit with PSA.