Photo: MINI
The Brexit vote was a surprise last year, and it was only surpassed by Trump’s win in the U.S. Presidential election.
Many automakers threatened to cut investments in the United Kingdom if the country would decide to leave the European Union, and German media reports that the BMW Group might be one of them.
Instead of closing the MINI factory in Oxford, the German conglomerate that owns the British brand could decide to shift production of the upcoming electric model.
The move would be made as a last resort to avoid potentially high import fees that could be added to products being built in the United Kingdom.
MINI’s future electric model could be produced in Regensburg and Leipzig, but the Dutch facility that already produces a few models from this brand might also be contracted.
The news comes from German newspaper Handelsblatt, which has learned of these intentions from unnamed sources within the BMW Group. The company insiders remain anonymous, but the news they bring would make sense if the European Union decided to tax products that are built outside its borders.
MINI’s first production electric model is supposed to reach the market in 2019, so the German company still has time to decide what it will do with it.
Sources inside the Munich-based corporation have explained under cover of anonymity that it does not make sense for them to continue investing in the UK if the country decides to do a “hard Brexit.”
The term refers to the United Kingdom’ departure from the European Union, which could bring back customs restrictions for citizens, along with import duties for products that are sold in the single market and made in the UK.
The value of an average automobile would bring significant taxes to its final price, which could make British-built products less competitive than their rivals when sold in the European Union.
If the “hard Brexit” were to happen, several automakers might have to make similar decisions to the one that is reportedly being discussed within the BMW Group.
Instead of closing the MINI factory in Oxford, the German conglomerate that owns the British brand could decide to shift production of the upcoming electric model.
The move would be made as a last resort to avoid potentially high import fees that could be added to products being built in the United Kingdom.
MINI’s future electric model could be produced in Regensburg and Leipzig, but the Dutch facility that already produces a few models from this brand might also be contracted.
The news comes from German newspaper Handelsblatt, which has learned of these intentions from unnamed sources within the BMW Group. The company insiders remain anonymous, but the news they bring would make sense if the European Union decided to tax products that are built outside its borders.
MINI’s first production electric model is supposed to reach the market in 2019, so the German company still has time to decide what it will do with it.
Sources inside the Munich-based corporation have explained under cover of anonymity that it does not make sense for them to continue investing in the UK if the country decides to do a “hard Brexit.”
The term refers to the United Kingdom’ departure from the European Union, which could bring back customs restrictions for citizens, along with import duties for products that are sold in the single market and made in the UK.
The value of an average automobile would bring significant taxes to its final price, which could make British-built products less competitive than their rivals when sold in the European Union.
If the “hard Brexit” were to happen, several automakers might have to make similar decisions to the one that is reportedly being discussed within the BMW Group.
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