Would shut plants in UK if Brexit hits supply chain, says BMW executive

BMW would have to shut down its Mini and Rolls-Royce plants located in Britain if Brexit seriously disrupts its supply chain, an executive at the German automaker told the Financial Times.

The warning comes after concerns voiced previous week by the head of Siemens’ operations in Britain, who informed Reuters that the nation should stay in the European Union customs union, contrary to the British government’s regulations.

“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,” BMW customs manager Stephan Freismuth was quoted as saying.

About 60 percent of the 378,000 Minis developed by BMW last year presented the production line in Oxford. Its factories located in Swindon, Hams Hall and Oxford presently employ around 6,300 employees to make BMW engines and Mini vehicles.

Airbus has also cautioned that British jobs would be under threat from a “no deal” Brexit, attracting criticism from government ministers who stated such comments undermined Prime Minister Theresa May’s negotiating stance.

BMW’s Freismuth added that the company wanted to preserve its British plants open and was collaborating on contingency plans, but that any disruption to imports of components would boost expenses and damage its ‘just in time’ manufacturing model.