GENEVA: Production of BMW’s Mini will still be disrupted if there is a delay to Brexit, the carmaker’s CEO said on Tuesday, signaling the auto industry faces upheaval even if Britain avoids crashing out of the European Union without a withdrawal deal on March 29.
Britain’s car industry, which employs around 850,000 people and is largely owned by foreign manufacturers, has been rushing through plans to cope with the potential disruption of a no-deal Brexit, such as building up inventories and in some cases organizing plant closures around Brexit day.
However, Prime Minister Theresa May said last week that if UK lawmakers once again rejected her Brexit deal, she would offer them a series of votes that could lead her to ask Brussels for a delay.
BMW said in September it was moving the annual maintenance shutdown for its Mini plant in Oxford, southern England, to April in case of disruption caused by Brexit.
“We have made preparations. If Brexit is delayed, we can postpone some measures, but the early summer break remains scheduled for April,” CEO Harald Krueger said at the Geneva car show on Tuesday.
Shutdowns and stockpiles take time and money to arrange, as for example employee holidays and suppliers are affected, making them hard to move.
And so, while carmakers are keen to avoid a no-deal Brexit, they also do not want the process to drag on.
BMW made 234,183 cars in Britain last year, out of the country’s total production of about 1.5 million.
just like to get certainty as quickly as possible,” Johan van Zyl, president and CEO of Toyota Europe said at an event late Monday, echoing recent comments from UK luxury sports car maker Aston Martin.
Zyl said Brexit planning had come at a “huge cost” and warned Britain needed to secure a frictionless trade deal with the EU.
“If anything happens between the EU and UK that will have a negative impact on competitiveness of the UK operations, it will put the future in doubt,” he said, referring to the entire UK car industry.
Japan’s Toyota made 129,070 cars at its Burnaston plant in central England in 2018 and is currently ramping up production of its new Corolla model.
Carlos Tavares, CEO of Peugeot and Citroen maker PSA Group, was more relaxed about a potential Brexit delay, saying he was in favor if the time was used to find a deal.
Daimler boss Dieter Zetsche, meanwhile, was hopeful a deal could be reached.
“It’s a game of poker. I am an optimistic person, and I hope that a no-deal Brexit is not realistic,” he said.
BMW: Mini output will still be disrupted if Brexit delayed
BMW: Mini output will still be disrupted if Brexit delayed
- Britain’s car industry employs around 850,000 people and is largely owned by foreign manufacturers
- While carmakers are keen to avoid a no-deal Brexit, they also do not want the process to drag on
Closing Bell: Saudi main index closes higher at 10,596
RIYADH: Saudi equities closed higher on Tuesday, with the Tadawul All Share Index rising 43.59 points, or 0.41 percent, to finish at 10,595.85, supported by broad-based buying and strength in select mid-cap stocks.
Market breadth was firmly positive, with 170 stocks advancing against 90 decliners, while trading activity saw 161.96 million shares change hands, generating a total value of SR3.39 billion.
Meanwhile, the MT30 Index closed higher, gaining 6.52 points, or 0.47 percent, to 1,399.11, while the Nomu Parallel Market Index edged marginally lower, slipping 3.33 points, or 0.01 percent, to 23,267.77.
Among the session’s top gainers, Al Masar Al Shamil Education Co. surged 9.99 percent to close at SR26.20, while Saudi Cable Co. jumped 9.98 percent to SR147.70.
Cherry Trading Co. rose 4.18 percent to SR25.44, and United Carton Industries Co. advanced 4.09 percent to SR26.46.
Al Yamamah Steel Industries Co. also posted solid gains, climbing 4.07 percent to end at SR32.70.
On the downside, Emaar The Economic City led losses, slipping 3.55 percent to SR10.32, followed by Derayah REIT Fund, which fell 2.92 percent to SR5.31.
Derayah Financial Co. declined 2.13 percent to SR26.62, while United International Holding Co. retreated 1.96 percent to SR155.20, and Gulf Union Alahlia Cooperative Insurance Co. eased 1.92 percent to SR10.70.
On the announcements front, Red Sea International Co. said it signed a SR202.8 million contract with Webuild S.P.A. to provide integrated facilities management services for the Trojena project at Neom.
The agreement covers operations and maintenance for the project’s Main Camp and Spike Camp, including accommodation and housekeeping, catering, security, IT and communications, utilities, waste management, fire safety and emergency response, as well as other supporting services.
The contract runs for two years, with the financial impact expected to begin in the first quarter of 2026. Shares of Red Sea International closed up 0.99 percent at SR34.74.
Al Moammar Information Systems Co. disclosed that it received an award notification from Humain to design and build a data center dedicated to artificial intelligence technologies, with a total value exceeding 155 percent of the company’s 2024 revenue, inclusive of VAT.
The contract is expected to be formally signed in February 2026, underscoring the scale of the project and its potential impact on the company’s future revenues.
MIS shares ended the session 2.82 percent higher at SR156.70, reflecting positive investor sentiment following the announcement.
