BMW says Brexit could cost auto industry up to $13bn

Automotive Industry

Source: Automotive News Europe, 2020-10-08

BMW CFO Nicolas Peter on Thursday said Britain's separation from the European Union could cost automakers and suppliers up to $13bn unless cross-border trade remains tariff-free and unbureaucratic.

BMW has spent a low double-digit million dollar amount this year to prepare for Brexit, Peter told journalists during a virtual roundtable discussion on Thursday 8 October.

"The auto industry association ACEA has estimated that it could cost carmakers and suppliers €10bn to €11bn ($11.7bn to $12.9bn)," Peter said.

"We need tariff-free trade. And even then, it needs to be seamless. We have a just-in-time manufacturing system so the administrative processing at customs needs to be efficient."

Furthermore, Britain should continue to keep pace with European Union emissions requirements so that automakers can offer the same cars in all European markets, Peter said.

Strong demand for electric and plug-in hybrid cars has helped BMW stay ahead of projected fleet emissions reduction targets for 2020, Peter said.

back to ECG news