MINI Plans to Shift More Production Out of UK after Brexit

MINI is planning to move out more production out of the United Kingdom if no Brexit deal is reached, according to Harald Krüger, CEO of MINI's parent company BMW. The brand has already shifted some of its UK production to the Netherlands last year, in preparation for March 29, 2019, the day the UK is scheduled to leave the EU. A month-long closure plan of its Oxford plant is to be enacted immediately after the exit.

Predicting what a hard Brexit could mean when the UK and EU deal falls through, Krüger said: "We are preparing for hard Brexit, that will be a lose-lose situation. We lose, the customers lose and the countries lose."

Despite MINI's plan to move out, Krüger emphasized that he still sees a long-term future for the brand's manufacturing plant in Oxford.

The brand currently produces the 3- and 5-door MINI hatchback as well as the Clubman wagon in its Oxford plant, which built about 60 percent of the 378,486 total MINIs produced last year.

"The UK is the largest market for Mini, so local production will stay," he added.

With this statement, Krüger raises the possibility that BMW could shift some MINI production from Oxford to the Netherlands, but replace it by bringing production of other MINI or BMW vehicles into the Oxford plant for the UK market. The MINI Clubman for instance, shares its platform with the BMW 1 Series and BMW 2 Series.

MINI/BMW isn't the only car manufacturer worrying about the impact of a no-deal Brexit. The manager of Toyota Manufacturing UK recently foreshadowed that such a situation could disrupt product at the plant for months.