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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.
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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.
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