A no-deal Brexit would be 'terrible' for carmarkers, putting thousands of skilled UK jobs at risk and potentially leading to production of the classic British Mini moving to the Netherlands, industry leaders have warned.
In a stark analysis of the impact of crashing out of the EU without a deal a senior BMW boss said the firm would 'consider' closing its Cowley plant because of the potential cost of export tariffs.
Peter Schwarzenbauer, who sits on the board of Mini-owner BMW, said that a no-deal Brexit was 'really a danger' the future of the Oxford factory where the pint-sized automotive icon is made and which has been making cars for around a century.
His comments to Sky News at the Geneva Car Show came as Didier Leroy, chairman of Toyota's European operations, said a no-deal outcome to EU withdrawal talks would be 'terrible' and would create 'big additional challenges' to UK operations' competitiveness.
The two firms employ almost 10,000 people at sites across the UK and their warnings are latest to come from high-profile manufacturers about what may happen if politicians fail to agree Brexit deal with Brussels.Mr Schwarzenbauer said it could not afford the added costs to production of the classic British marque if export tariffs were introduced.
Speaking at the Geneva Car Show he told Sky News: 'If this was to come, which is the worst-case scenario … we would need to consider what it actually means for us in the long run. For Mini this is really a danger no doubt about it.Asked if it could affect production at the Mini plant in Cowley, Oxford, he added: 'We at least have to consider it you know, because we cannot absorb 10 per cent costs.'
He added that the company would also not be very happy with a two or three month delay to Britain's departure from the European Union because the industry has been preparing for a March 29 exit.
Also speaking in Geneva Graham Biggs, corporate communications director of BMW Group UK, told the Press Association: 'In the event of a no deal Brexit some or all of the production of the Mini could be moved to Holland where we have a plant.
'We need frictionless trade and a no deal Brexit will not give us that from what we can see.
'Nothing is certain. I cannot give any guarantees as to the future of the Oxford plant. No company can. I cannot make any promises to the workers because at the moment we just don't know. But what I can say is we are heavily invested in the UK.'
Last summer BMW revealed it has scheduled a weeks-long shutdown of the Cowley plant to coincide with Brexit as insurance against supply hiccups from a disorderly British departure from the European Union.
The German automaker said annual maintenance would begin on April 1 - the first working day after Brexit is due to take place - and last several weeks. The shutdown usually takes place in summer.
BMW chief Peter Schwarzenbauer warned that no-deal Brexit could affect Mini production in the UK because of the adding export costs it could create, threatening thousands of jobs
The firm had already threatened to close all its plants - including the Rolls-Royce factory in Goodwood - threatening up to 8,000 jobs across the country, if Brexit causes delays to its supply chain at the border.
The stark warning by Stephan Freismuth, the car giant's customs chief, came days after Airbus said it could leave the UK if Britain crashes out of the EU without a deal - costing thousands of jobs.
Today's warning from BMW comes less than two years after it announced production in the UK of the electric Mini would start this year at the Oxford plant.
It is the latest Brexit intervention from a major manufacturer warning about the impact of leaving without a deal.Meanwhile, Didier Leroy, chairman of Toyota's European operations, said a no-deal outcome to EU withdrawal talks would be 'terrible' and would create 'big additional challenges' to UK operations' competitiveness.
His comments came after Honda announced that it is closing its plant in Swindon and Nissan ditched plans to produce the X-Trail SUV in Sunderland, though both companies said the decisions were driven by factors other than Brexit.
Toyota began production of its new hybrid-powered Corolla model at its plant in Burnaston, Derbyshire, in January.
It employs some 3,000 in the UK.
Cars have been made at Cowley in Oxford for around a century and the site currently has around 4,500 staff
Mr Leroy told the Financial Times that the £240 million investment in the model was made on 'significant trust in the UK that they would be able to achieve a good deal in Europe'.
He stressed that Toyota had 'no plan today to withdraw from the UK and stop production'.
But he added: 'If we don't have access to the European market without a specific border tax, it seems to be extremely complicated to think about ... introduction of another model.'
Theresa May's official spokesman said the Prime Minister believes the best way to deliver the certainty which car companies want is for MPs to approve her Withdrawal Agreement in the 'meaningful vote' due to take place by March 12.
He said: 'The PM fully understands that businesses need more certainty and for us to secure a deal which allows us to protect those just-in-time supply chains and deliver frictionless trade.
'That's why we are working hard to secure the changes which MPs need in order to be able to support the meaningful vote.
'Only by passing the meaningful vote will we be able to deliver that certainty.'
BMW chief Peter Schwarzenbauer warned that no-deal Brexit could affect Mini production in the UK because of the adding export costs it could create, threatening thousands of jobsThe firm had already threatened to close all its plants - including the Rolls-Royce factory in Goodwood - threatening up to 8,000 jobs across the country, if Brexit causes delays to its supply chain at the border.The stark warning by Stephan Freismuth, the car giant's customs chief, came days after Airbus said it could leave the UK if Britain crashes out of the EU without a deal - costing thousands of jobs.Today's warning from BMW comes less than two years after it announced production in the UK of the electric Mini would start this year at the Oxford plant.It is the latest Brexit intervention from a major manufacturer warning about the impact of leaving without a deal.Meanwhile, Didier Leroy, chairman of Toyota's European operations, said a no-deal outcome to EU withdrawal talks would be 'terrible' and would create 'big additional challenges' to UK operations' competitiveness.His comments came after Honda announced that it is closing its plant in Swindon and Nissan ditched plans to produce the X-Trail SUV in Sunderland, though both companies said the decisions were driven by factors other than Brexit.Toyota began production of its new hybrid-powered Corolla model at its plant in Burnaston, Derbyshire, in January.It employs some 3,000 in the UK.
Cars have been made at Cowley in Oxford for around a century and the site currently has around 4,500 staffMr Leroy told the Financial Times that the £240 million investment in the model was made on 'significant trust in the UK that they would be able to achieve a good deal in Europe'.He stressed that Toyota had 'no plan today to withdraw from the UK and stop production'.But he added: 'If we don't have access to the European market without a specific border tax, it seems to be extremely complicated to think about ... introduction of another model.'Theresa May's official spokesman said the Prime Minister believes the best way to deliver the certainty which car companies want is for MPs to approve her Withdrawal Agreement in the 'meaningful vote' due to take place by March 12.He said: 'The PM fully understands that businesses need more certainty and for us to secure a deal which allows us to protect those just-in-time supply chains and deliver frictionless trade.'That's why we are working hard to secure the changes which MPs need in order to be able to support the meaningful vote.'Only by passing the meaningful vote will we be able to deliver that certainty.'
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