BMW UK Plants may be Shut Down if Brexit Seriously Disrupt Supply Chain

BMW UK Plants may be Shut Down if Brexit Seriously Disrupt Supply Chain

German carmaker BMW may have to shut down its manufacturing plant based in the United Kingdom if the supply chain is “seriously disrupted” over Brexit.

“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,” said BMW executive Stephan Freismuth.

The UK has voted to leave the European Union back in 2017. The UK and the EU are currently ironing out unresolved issues as they hope to transition to a smooth post-Brexit relation. UK is set to be out of the economic bloc by March 2019.

For BMW, importing for their manufacturing in these British factories may pose a big challenge since they are getting 90 percent of their parts from the rest of European countries. If parts cannot get to the factory at the expected time, Freismuth said the factory “will not run as smoothly and reliably as is desirable.”

“If you have a stop for one day, it costs a lot of money, but at the end, if there are more stops our management have to decide how this can be sorted,” the BMW executive said in reports.

The possible closure will also affect at least 8,000 workers who are employed in BMW’s British factories in Swindon, Hams Hall, and Oxford.

Many have expressed concerns over the possible impact of Brexit, not just on how it will affect the manufacturing business sector but to inflation, which may result to increase in prices both in goods and services.

“Inflation has accelerated to its fastest pace in four years, and economic growth has slowed, as well. Wages are not keeping pace with price increases, and Britons are increasingly feeling the pinch,” a New York Times report read.

The Guardian said other UK manufacturing businesses are also expected to raise serious concerns over Brexit and its impact.

Earlier, Airbus expressed concerns that the UK government may leave the economic bloc without a transition deal, which, they added, may force them to reconsider its investments in the UK, and its long-term footprint in the country, severely undermining UK efforts to keep a competitive and innovative aerospace industry.”

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