Brexit continues to cause major headaches for automakers including BMW. The brand is looking at various options for pricing and production as a no-deal Brexit looms. According to Automotive News CFO Nicolas Peter is consider several options ranging from increasing pricing in the UK and Europe to outright moving MINI production from England. Additionally price increases would also be on the table for the UK market
Peter went on record saying MINI may move production to Germany or China if tariffs undermine the business case of producing them in the U.K. “In the long term, we have to decide what the customs situation is like,” he said. “We are flexible with the Mini. “We hope the U.K. and the European Union will come to a sensible agreement. The company has stockpiled parts to safeguard production.”
More than half of all MINIs were imported to the EU last year and would be massively impacted if no deal is made.
Likewise the UK is a large market for German made BMWs which would likely see price increased almost immediately. And even with price increases Peter warns costs additional cost wouldn’t be covered.