The Strategist

BMW is considering leaving the UK because of Brexit

06/29/2018 - 12:36

The German carmaker BMW needs specific information about the plans of the UK to leave the European Union. "If we do not have clarity in the next few months, then we will have to start preparing Plan B... which means the UK's competitiveness is declining," said Ian Robertson, a BMW board member, in an interview with the BBK media company.

According to Robertson, the subject of Brexit is crucial, as it can have negative consequences for BMW. In particular, because the company invests in the creation of structures, "which we may not need, as well as in storage facilities, which we, perhaps, will not use," - explained Robertson.

BMW produces cars of the brands Mini and Rolls Royce in the UK, where the plants of the concern employ about 8 thousand people.

In the meantime, investments in the UK automotive industry have halved on the backdrop of the uncertainty associated with Brexit, the Society of Motor Manufacturers & Traders (SMMT) reported.

The volume of investments for the first six months of 2018 amounted to 347.3 million pounds ($ 460 million) compared to 647.4 million pounds for the same period last year.

SMMT noted that investments this year were minimal since the financial crisis.

"There is no reliable Plan B for problem-free customs mechanisms, and it is unrealistic to expect that new trade agreements [with the rest of the world] that compensate for the huge value of trade with the EU can be concluded." The government should reconsider its position on the customs union," Chief Executive Officer of SMMT Mike Hawes said.

"Brexit has not brought dividends to our industry, especially in an increasingly hostile and protectionist global trading environment." Our message to the government is that while you cannot demonstrate how exactly the new model for customs and trade with the EU can reproduce the benefits that we currently use it, do not change it, "added Hawes.

The head of SMMT told the BBC that the automotive industry needs "clarity" regarding the future after Brexit.

According to him, the scenario in which Great Britain leaves the customs union and the single market without a preferential trade deal will be "the worst option imaginable."