Mini stops production because of Brexit

Fear of delivery bottlenecks

Mini, the subsidiary of the German car manufacturer BMW, is stopping their production in Oxford because of the Brexit.
Since the British voted to withdraw from the EU two years ago, talks and negotiations have been going on as how it should look. So far without result. The companies that produce in Great Britain or have their headquarters there are slowly getting nervous and preparing for the so-called no-deal scenario. In this case, the country would leave the EU without an agreement.

Is the worst case scenario about to happen?

In order to prepare for this worst case, BMW intends to close the mini plant in Oxford for four weeks from 1 April. The aim of this measure is to reduce supply bottlenecks through the Brexit without an agreement. However, a spokeswoman of the company emphasized that the location Great Britain will generally be maintained.
And what about politics? EU Council President Donald Tusk did not exclude the no-deal scenario. But he warned of the possible consequences: “If we all act responsibly, we can avoid a catastrophe”.

Mini is not alone

It remains uncertain whether a political decision will be made. Tusk has once again granted the negotiations a postponement. But the time for an orderly exit from the EU is nevertheless running out. In November, a new special summit shall provide clarity. Then the conditions for the Brexit shall be clarified and a transitional period until the end of 2020 shall be agreed. If the negotiations fail again, there is a threat of a hard chaotic break between the EU and Great Britain – economically and politically. Originally, a withdrawal agreement should have been agreed by mid-October.

Meanwhile, business enterprises are preparing for all kinds of scenarios. Not only Mini, but also Jaguar Land Rover announced on Monday that they intend to introduce a three-day week from October to December at the Castle Bromwich production plant.