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BMW Warns that “Hard” Brexit Could Lead to Plant Closures
BMW AG says it is preparing for a worst-case “hard” Brexit when the U.K. quits the European Union next spring that could mean closing down operations in England.
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BMW AG says it is preparing for a worst-case “hard” Brexit when the U.K. quits the European Union next spring that could mean closing down operations in England.
BMW heralds the deal Prime Minister Theresa May’s proposed on Wednesday as a positive step. But the company notes that the resulting political uproar this week leaves the future of trade between the U.K. and EU as uncertain as ever.
May has noted that the U.K.’s vote in June 2016 to quit the EU makes it legally obliged to do so on March 29, regardless of whether or not it has worked out a smooth transition. Her plan would buy the two sides another 21 months in which to finalize
Like other carmakers, BMW warns that a hard Brexit would trigger higher tariffs and massive disruptions to existing supply chains. Carmakers in England export about 80% of their output, mainly to Europe.
BMW has been warning for months that serious supply issues would force it to shut down its Mini and Rolls-Royce operations in England and reestablish them in the EU or elsewhere.
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