Citing immediate disruptions resulting from Brexit, BMW and Peugeot had earlier announced that it will be closing their plants this month. However, in spite of the delay in Brexit, both the manufacturers have proceeded with their plant closures. The German automaker which builds just over 15 per cent of Britain’s 1.5 million cars, shifted its annual summertime shutdown of four weeks to April to “minimize the risk of any possible short-term parts-supply disruption in the event of a no-deal Brexit.” On the other hand, Peugeot is expected to halt operation in its British plant for two weeks.
Reports suggest that Britain’s exit from the EU, which was earlier scheduled on March 29, has been pushed further to at least April 22 or potentially much later, ruining a few of the contingency plans of automakers.
The German automaker builds just over 15 per cent of Britain’s 1.5 million cars.
Such shutdowns are planned months in prior so employee holidays can be scheduled and suppliers can adjust volumes, making them difficult to be move. “This is what our company and our workforce have planned for over many months and it is fixed into our business planning,” said a BMW spokesman.
The country’s exit from the EU has significantly affected its once roaring car sector which had been on track for record production but since 2017 has posted sharp falls in sales, output and investment.
As part of Brexit contingencies, BMW’s Rolls-Royce factory in Goodwood will close for two weeks whilst Jaguar Land Rover’s three car plants and engine facility and Honda’s Swindon facility will also shut for a few days this month.
The country’s exit from the EU has significantly affected its once roaring car sector which had been on track for record production until 2017.
The turbulence in the past few months has forced Nissan to cancel plans to build a new sport utility vehicle at its English Sunderland plant while Honda confirmed that it will end production at its plant in 2021 marking the biggest blow to the sector in years.
German auto giant BMW which is also closing its central English Hams Hall engine facility at Swindon press shop and sub-assembly site for four weeks has confirmed that will move some engine and Mini output out of Britain if there’s not an orderly Brexit.