BMW warns of halt to UK production if it can’t import components from EU after Brexit
BMW has indicated it could be forced to close its plants in the UK if it is unable to import components rapidly enough from the continent after Britain leaves the EU.
Customs manager Stephan Freismuth told the Financial Times: “We always said we can do our best and prepare everything, but if at the end of the day the supply chain will have a stop at the border, then we cannot produce our products in the UK,” he added.
About 90 per cent of the parts used in the company’s British plants come from Europe.
A spokesperson for the department for business, energy and industrial strategy said it was confident the government would secure a good deal with the EU.
“The UK automotive industry remains one of our great success stories and a whole host of companies have recently committed to investing billions of pounds in the sector, including Nissan, Toyota, BMW and Vauxhall,” it said.
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“Through our modern industrial strategy and landmark automotive sector deal, we are working with the sector to put the UK at the forefront of new automotive technologies to ensure we remain the destination of choice for future investment.”
The warning from the car manufacturing giant comes hot on the heels of similar expressions of concern by Airbus and Siemens over the slow progress of the Brexit negotiations.
Last week, Airbus warned it could leave the UK in the event of a hard Brexit, putting around 14,000 jobs at risk. The firm said it would consider moving out of the UK if there is no transition deal involving ongoing membership of the single market and customs union.
Siemens also issued stark warnings, with chief executive Jügen Maier criticising the government for thinking the negotiations were going to be easy and for using “unhelpful” slogans.
Health secretary Jeremy Hunt said the “threats” made by Airbus were “completely inappropriate”.
Speaking on The Andrew Marr Show, Hunt said the country was at a “critical moment” in the Brexit negotiations that demanded unity and for businesses to “get behind” Theresa May to deliver the “best possible Brexit”.
“The more that we undermine Theresa May the more likely we are to end up with a fudge, which would be an absolute disaster for everyone” he said.
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