BMW issues warning of plants closure in the UK after Brexit – Research Snipers

BMW issues warning of plants closure in the UK after Brexit

Customs manager of BMW has warned the UK government that it might close down the plants in the UK if Brexit would disrupt its supply chain.

BMW customs manager Stephan Freismuth stated after the company warned the UK government last week and wanted clarity on their preferred trade and customs position. After Airbus has warned the government that it will end its wings production in the UK if Brexit would interrupt their production processes.

Airbus employs over 14000 staff in Britain has released a risk assessment warning stating that the company will revisit its investments in the UK and the sustainable long-term footprints in the country if Britain leaves the single market and customs without a transition agreement.

While talking to Financial Times, Mr. Freismuth said, “We are always committed to doing our best to prepare everything, but if the supply chain is stuck at the borders we cannot continue to produce our products in the UK.”

This was a very strong message to the UK government by BMW after Airbus, the company employs 8,000 people in the UK and has four manufacturing plants including Mini plant near Oxford and Rolls-Royce manufacturing and assembling plants in Goodwood.

Collectively 22,000 people’s jobs are at stake due to the trade issues amid Brexit, the UK government has no definite plan for these manufacturers as yet.

Mr. Freismuth said that BMW wanted to keep running its British plants and considering contingency plans, however, if the disruption arises in importing and exporting that would increase the costs and affect BMW’s ‘just-in-time’ approach to manufacturing.

A BMW spokesperson responded to the situation and said, “We have invested considerably in the UK and we are determined to our manufacturing facilities, while Brexit opens a significant challenge, and we are determined to face it.”

The large businesses have been warning the UK government over the outcome of Brexit negotiations and has sparked the backlash from Ministers.

The International trade secretary Dr. Liam Fox in a response to Airbus comments said, “The Company should be making the case against no-deal Brexit in Europe and not just to the UK.”

Jeremy Hunt, Secretary Health also commented, “The threats from the businesses were utterly inappropriate.”

In the House of Commons on Monday, shadow business minister Chi Onwurah criticized the ministers for creating a chaotic Brexit situation which was dividing the country and not bringing them together, he said this approach is bringing our industrial base at risk.

Drew Hendry, spokesperson of SNP termed the remarks by Airbus as “Sobering news for those ones drunk on the fantasies of Brexit.”