09:31 PM IST
BMW would have to close its British factories which make Mini and Rolls-Royce cars if Brexit leads to serious supply chain disruption, a company executive said in remarks published by the Financial Times on Monday.
"We always said we can do our best and prepare everything, but if at the end of the day the supply chain will have a stop at the border, then we cannot produce our products in the UK," BMW customs manager Stephan Freismuth said.
BMW`s warning follows concerns expressed last week by the head of Siemens` UK operations, who told Reuters Britain should stay in the EU`s customs union, contrary to the British government`s policy.
Airbus also warned that British jobs would be under threat from a `no deal` Brexit, drawing criticism from government ministers who said such comments undermined Prime Minister Theresa May`s negotiating position.
BMW`s Freismuth added that the company wanted to keep its British plants open and was working on contingency plans, but that any disruption to imports of components would increase costs and damage its `just in time` manufacturing model.
"If you have a stop for one day, it costs a lot of money, but at the end if there are more stops our management have to decide how this can be sorted," he said.
About 90 percent of the parts used in BMW`s British factories come from mainland Europe.
BMW`s head office had no immediate comment on Freismuth`s remarks.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
7 Stocks to buy for long term: Analysts recommend largecap, midcap stocks; Axis Bank, Ambuja Cements on the list
)
Top 5 Largecap Mutual Funds With up to 42% Return in 3 Months: Rs 22,222 SIP investment in top-performing fund has jumped to Rs 70,440
)
Power of Rs 10,00,000 One-time Investment: How your Rs 10 lakh investment can turn into Rs 3 crore, Rs 4.47 crore, and Rs 6.63 crore in 30 years
)
8th Pay Commission Pension Calculations: How your Rs 20,200, Rs 25,250, Rs 34,000, and Rs 44,200 basic pension can be revised at 2.10-2.50 fitment factors (detailed charts)
)
How a 29-KM expressway transformed Gurugram’s real estate; these 4 areas are now hotspots for millionaires
)
8th CPC Salary Calculations: What can be revised basic pay for Grade Pay 1800, 2400, 2800 and 4200 employees at 1.92, 2.08 and 2.28 fitment factors?
)
Power of Rs 13,000 SIP: How many years will it take to generate Rs 9,00,00,000 corpus with just Rs 13,000 monthly investment?
09:31 PM IST