Mexican Media Brands
BMW Threatens to Close U.K. Plant Over Brexit
BMW AG says it will shut down its four factories in the U.K. unless the facilities are able to efficiently import parts from Europe after the country leaves the EU next spring.
#economics
Share
BMW AG says it will shut down its four factories in the U.K. unless the facilities are able to efficiently import parts from Europe after the country leaves the EU next spring, the Financial Times reports.
Brexit will begin next spring. But it is likely to take several years to complete new trade agreements to replace the tariff-free arrangements previously enjoyed by the U.K. as a member of the European Union.
Most of the Mini small cars BMW sells worldwide are assembled in Cowley, England. The German carmaker also builds Rolls-Royce luxury cars in Goodwood. Two more BMW factories in the country make engines (Hams Hall) and metal stampings (Swindon).
FT says about 90% of the parts required by BMW’s English plants come from Europe. The company, like others who make cars in England, fears production disruptions if Brexit results in lengthy custom checks at the border.
Earlier this year Nissan Motor Co. warned that just six minute of downtime per day would render its giant assembly plant in Sunderland unprofitable, FT notes.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.