BMW stores components in England
Preparation for Brexit
The German car manufacturer BMW wants to prepare themselves for the worst-case scenario of the Brexit. The manufacturer wants to fly components to Great Britain and store them there. The aim of this measure is to minimize import problems after the Brexit in spring 2019.
This is intended to reduce supply problems when the British leave the EU at the end of March. Less than five months before, the exact course of the withdrawal has not yet been fully clarified.
BMW is therefore planning to relocate and reduce production. When the Brexit comes into force, production at the Oxford plant will be shut down within four weeks after the Brexit. It is the plant where the electric version of the Mini is built.
BMW wants to fly in components
However, should a chaotic exit occur, a so-called no-deal scenario, BMW prepares several options. The aim is to maintain production at all locations and plants.
In order to be able to quickly obtain components, the carmaker is therefore considering importing them by air freight. The advantage is fast delivery. But in the long run this import route is costly. But this means that the production lines in the plants can continue to run at least for a transitional phase. BMW does not want to close plants in Great Britain because of the Brexit.
Economic consequences not calculable
Already in September, the car manufacturer from Munich had announced that they would close the mini plant for four weeks from 1 April. BMW is not alone with a short-term closure and production cutbacks: Jaguar Land Rover and Schaeffler also announced that they would cut back production. Airbus was even considering closing their plants in Great Britain in the summer of 2018.
It is not clear when a political decision will be made. However, the Federation of German Industries warned against a disorderly Brexit. Above all, the solution to the Irish question continues to provide much discussion material.