BMW has warned production of the Mini at Oxford could be at risk in the event of a no-deal Brexit.

BMW employs around 850 people at its Swindon plant in Stratton, making doors, bonnets and tailgates for the Mini models. The Swindon factory supplies the main plant at Cowley, Oxford.

The Stratton and Oxford plants were already expected to close for all of April, after BMW brought forward a planned shut-down.

Peter Schwarzenbauer, the board member responsible for Mini and Rolls Royce production, told Sky News the German car giant would need to consider moving production away from the UK, as the firm may not absorb extra costs they would face.

"This would really be a huge burden to the Mini brand," he said of a no-deal Brexit.

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"If this would come - the worst case scenario... we would need to consider what it exactly means for us on the long run.

"For Mini this is really a danger. No doubt about that.

"For us... if there is a two-to-three month delay we would not be very happy because we need certainty in our planning processes."

BMW clarifies director's statement

A BMW Group spokesman said: “As a major employer, exporter and investor, the BMW Group remains committed to the UK. With four plants producing vehicles, components and pressed parts for all three of our automotive brands, the UK also plays an important role in the BMW Group’s production network.

"Until we have clarity on the UK / EU trading relationship from April onwards, as a responsible employer we must continue to plan for the worst-case scenario, which is what a no-deal Brexit would represent.

"Our production system is designed to be highly flexible, so that we can respond quickly to changing market demand. This is especially important in a volatile, fast-changing environment.

"We are currently going to great lengths to prepare our production network for the impact of Brexit. The aim is to ensure, as far as possible, that the locations concerned can continue production after Brexit without unnecessary disruption. This process requires considerable effort on our part.”

New revelations build on previous comments

Last year, BMW chief executive Harold Kruger said production of the Mini could move to the Netherlands in the event of a no-deal Brexit - if there were no free trade agreements. 

Mr Kruger said: “We are preparing for a hard Brexit and have brought forward our shutdown at Oxford because we don’t know what the disturbance of stoppages and lorries not arriving on time coming across the Channel will be.

“If there is a no-deal Brexit we will be impacted because some of the cars will not be able to meet certain free trade agreements across the globe, because the UK portion of the value of components including the engine in the car is not enough for some of these free trade agreements.

“If we do not qualify from the UK we will move production to the Netherlands because then we can fulfil those free trade agreements.”

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The BMW plant in the Netherlands is the company’s main European manufacturing plant.

A BMW spokesman sought to clarify the company’s position, telling the Adver: “While a hard Brexit is currently not our main planning scenario, we are preparing for it.

“Should this happen, it is possible that we could move some Mini production to the Netherlands but there are advantages to having our Mini plant here especially when the UK is the largest sales market for the car.

“In addition, the UK is the fourth largest market in the world for BMW Group – we sold nearly a quarter of a million cars here last year.

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“And we see the benefit of and remain committed to manufacturing here having invested nearly £2 billion in our UK operations since 2000.”

MP reaction

Robert Buckland, MP for South Swindon, said: "BMW's comments are an important reminder about the need for the UK to leave the EU with a deal as soon as possible to end the current uncertainty.

"That is why I will continue to work wito achieve a withdrawal agreement to avoid a no deal crash-out."

More follows.