BMW consider moving MINI operations to Germany over Brexit

BMW (ETR:BMW) have suggested that new electric MINI prototypes may be manufactured in Germany instead of the UK, due to Brexit uncertainty.

Whilst the majority of MINI vehicles are currently produced at the company’s Oxford plant, the car manufacturer is reportedly considering making its electric version of the MINI in Germany. Full production is set to begin by 2019, with initial electric MINI’s being made into the final end of this year.

In a formal statement on the matter, BMW said that “The decision on where to build the full-electric Mini will be taken this year.”

“As formal negotiations between the UK and the EU have not even begun yet it is too early to comment on what Brexit will mean for our business.”

Despite the fact that Prime Minister Theresa May has announced that the government intends to abandon membership to the single market in order to proceed with Brexit negotiations, BMW were clear to emphasise that it remains imperative to their business remaining in the UK. The company added:

“The BMW group has always made clear that we believe integration of the UK into the EU single market, maintaining free movement of goods, services, capital and talent, would be best for business. What’s important for us is that the UK’s negotiations with the EU result in uncomplicated, tariff-free access to the EU single market in future.

“As a major investor and employer in the UK, the BMW group urges the government to take the concerns of international business into account. Not only free trade but also cross-border employment opportunities and unified, internationally applied regulations are of proven benefit to business, the economy and individuals.”

Currently, the majority of MINI’s are indeed produced in the UK, however should BMW make the decision to move electric car operations to Leipzig or Regensburg this will present a significant blow to the government’s “active” industrial strategy plans. This follows pressure from car maker Nissan (TYO:7201), who threatened to review its Sunderland plant in reaction to Brexit developments. Most recently, Nissan have introduced its first “self-driving” car, which is currently being tested across London.

Alongside this, BMW currently employs more than 24,000 people in Britain, which may be jeopardised should further operations be relocated to Europe.