BMW to delay investment decision until after Brexit talks

BMW-to-delay-investment-decision-until-after-Brexit-talksBMW is set to wait until Brexit negotiations have given some indication on the future direction of the UK, before committing to any investment at any of its British based plants.

CEO of the German car maker, Harald Kruger said: “At BMW Group, decisions about investments are not due at the moment. This is why we can await the outcome of negotiations.”

Mr Kruger detailed the company’s viewpoint at a third-quarter earnings summary with members of the Associated Press.

In addition to their namesake branded cars, BMW also manufactures Mini and Rolls-Royce vehicles in Britain. The firm is one of a large number of UK based European companies fielding questions at the moment following the Brexit vote, which could potentially lead to new trade tariffs and higher input costs.

Thousands of British jobs would be put at risk if BMW decided to relocate its UK operation to the continent.

Nearly 5,000 workers are employed at BMW’s sites in Swindon, Oxford and Hams Hall in Warwickshire.

BMW says its contribution to the UK’s gross domestic product per year is in the region of £1.2 billion, exports of car, engine and related products stand at around £2.4 billion annually.

Mr Kruger’s comments come hot on the heels of Nissan deciding to commit to its UK operations and announce significant investment in its Sunderland plant. This was confirmed by the Japanese car maker once the Government promised trade free access to the EU markets.

However, controversy has followed the announcement, with opposition MPs demanding the Government details the actual terms of the deal struck with Nissan.

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