BMW says it is in talks with German and British government bodies, as well as the VDA, with the Munich-based automaker urging London to maintain tariff-free access to the European Union (EU) post Brexit.
The comments come as British Prime Minister, Theresa May outlined some of her thinking behind the imminent triggering of Article 50 to leave the European Union (EU) on 31 March, with the UK Premier hinting the auto sector could secure Single Market access through unspecified “arrangements.”
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BMW – in common with other powerful German automakers – has a clear interest in maintaining current trading mechanisms with Germany’s vehicle sector exporting more to Britain than to any other country in the world with 810,000 passenger cars built in 2015 and shipped to the UK.
“We are [in] talks with the VDA and with various government bodies, both here in Germany and the UK, which is nothing unusual; we are making our case,” a BMW spokeswoman told just-auto from Munich. “We are in contact [as well] with the SMMT [British auto trade association].
“It [UK] is the fourth biggest in terms sales and it is a big gap between four and five. We sold more than 250,000 [cars] for the first time in the UK.”
The importance of the UK to BMW can be gauged by some of those numbers which show Britain is the Group’s fourth biggest market worldwide, behind China, the US and Germany, with a significant distance to France in fifth position, where it sold 84,257 cars last year.
” The BMW Group continues to operate ‘business as usual’ at its four manufacturing bases in the UK,” a BMW statement sent to just-auto noted. “It is too early to comment on what Brexit will mean for our business as negotiations have not yet even begun.
“The BMW Group has always made clear we believe integration of the UK into the EU single-market, maintaining free movement of goods, services, capital and talent, would be best for business. We acknowledge the Prime Minister’s announcements and urge her to ensure the UK’s negotiations with the EU result in uncomplicated, tariff-free access to the EU single market in future.
“As a major investor and employer in the UK, the BMW Group urges the government to take the concerns of international business into account. Not only free trade but also cross-border employment opportunities and unified, internationally applied regulations are of proven benefit to business, the economy and individuals.”
German automotive association, VDA, also threw its considerable weight behind the continuation of the status quo, cautioning of “severe economic consequences” were Britain to quit the Single Market as the British Prime Minister is promising.
“For the German automotive manufacturers, the UK is the largest market for their exported passenger cars,” said VDA president, Matthias Wissmann in comments sent to just-auto from Berlin. “Conversely, the automotive industry in Britain accounts for 57% of all the country’s exports to the EU. So British vehicle makers are hugely dependent on exports to the Continent.
“Automotive companies therefore have a major interest in the identification of solutions that enable the intensive trade and associated value creation to continue as before.”
Last week, Germany’s Association of Supply Chain Management, Procurement and Logistics (BME), warned of a ‘poisonous’ effect of the UK leaving the European Union (EU), with the risk of contagion potentially spreading to other Member States.
“For us it concerns a precedence with incalculable results – we have all no experience with it if a Member State leaves the EU,” BME general manager, Christoph Feldmann told just-auto. “This lack of clarity is a poison for any enterprise decision.”
BMW noted it has invested nearly GBP2bn (US$2.5bn) in its UK operations since 2000, with the Group contributing GBP1.2bn each year to British GDP.
BMW Group and its dealer network employ more than 24,000 people directly while supporting nearly 50,000 UK jobs in total. Some 80% of Minis and 90% of Rolls-Royce cars are exported each year.
See also: BMW buyer plans more parts purchasing with Daimler
