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“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.
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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.
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