LONDON -- BMW is continuing to prepare for a "worst-case scenario" of no-deal Brexit even after lawmakers voted to seek a delay to Britain's exit from the European Union.
BMW builds over 15 percent of Britain's 1.5 million cars, making Minis at a factory in Oxford and Rolls-Royce models in Goodwood in addition to more than 375,000 engines at its Hams Hall facility.
BMW said earlier this month that it could move some production out of Britain if the country does not secure an orderly departure from the European Union, another warning from a once soaring sector that is now reporting dips in investment, sales and output.
British lawmakers voted overwhelmingly on Thursday to seek a delay to Brexit, which had been due on Mar. 29.
"As a responsible employer, we must therefore continue to prepare for the worst-case scenario, which is what a no-deal Brexit would represent," a BMW spokesman said.
BMW said its preparations cover all key areas of its business including manufacturing, sales, customs processes, IT and logistics.
Factory shutdowns
BMW's Mini and Rolls-Royce brands, Jaguar Land Rover and Honda together accounted for around 55 percent of UK car output. They all plan to shut their factories in April from between a week to up to a month in case of any disruption from a no-deal Brexit. A delay would ruin such contingency plans as shutdowns are generally organized months in advance so employee holidays can be scheduled and suppliers can adjust volumes, making them hard to move.
Honda said any delay to Brexit must be "purposeful" and long enough to give business stability. "We are now looking to the government to deliver a clear, legally certain, path forward to avoid no deal and to reach an agreement with the EU that delivers the conditions that support the continued competitiveness of our European operations," a spokesman said.
