GENEVA (Reuters) - BMW's CEO warned that Mini production disruptions could persist even if Brexit is delayed, underscoring ongoing challenges for the UK automotive sector amid political uncertainty. The automaker emphasized preparations for potential supply chain issues, while industry leaders called for clarity to avoid long-term economic impacts.
The UK car industry, employing 850,000 people and dominated by foreign manufacturers, accelerated contingency plans for a no-deal Brexit, including inventory stockpiles and temporary plant closures. Prime Minister Theresa May indicated potential parliamentary votes could lead to a Brexit delay if her deal is rejected.
BMW shifted its Oxford Mini plant maintenance shutdown to April 2019 in anticipation of Brexit-related disruptions. CEO Harald Krueger stated that while some measures could be postponed with a delay, the April schedule remains firm due to logistical constraints.
Industry leaders expressed mixed perspectives. Toyota Europe's Johan van Zyl called for a frictionless trade deal, noting that 2018 data showed the sector's vulnerability. PSA Group's Carlos Tavares supported a delay if it facilitates a deal, while Daimler's Dieter Zetsche remained cautiously optimistic about avoiding a no-deal scenario.
FUTURE IN DOUBT ¶
Van Zyl highlighted the importance of certainty, stating that 2018 production figures demonstrated the industry's financial strain. He warned that uncertainty threatens the sector's future, emphasizing the need for a frictionless trade agreement with the EU.
Toyota produced 129,070 cars at its Burnaston plant in 2018, reflecting the scale of operations at risk. PSA Group's Tavares acknowledged the complexity of Brexit negotiations, while Daimler's Zetsche expressed hope for a negotiated exit.
