MINI Might Move EV Manufacturing Away from Britain Due to Brexit

Last year, Britain voted on leaving the European Union. The Brexit came as a surprise to everyone and there was so much anxiety about the matter and how it will affect the economy. So far, only a small hit the British pound has happened but the instability of the situation is already forcing companies to think about their operations based in Britain. MINI is one of those who are seriously considering moving their operations to other EU countries.

Reuters reports that the BMW-owned manufacturer is forced to think about where to house their operations, even if the brand’s home is Oxford. This means that 70% of MINI cars will have to be manufactured somewhere else. If note, they will be subjected to the possible tariff imposed to cars made in the UK after the Brexit has been finalised.

Now that MINI is about to manufacture their future electric vehicles, it is the right time to make plans on where they want to build this. One option would be the plant in Netherlands where BMW builds the MINI Countryman. The Leipzig or Regensburg plants are also viable choices.

“One of the elements is what is the likelihood of a tax regime and if there’s a tax regime, how would it apply,” Ian Robertson said during an interview at the Goodwood Festival of Speed in southern England. “If you made the motor in a German plant and you then assembled the car in a British plant, and you took the cars back to the German market, then the duty that you would pay would be reclaimed,” he said, in an example of the options companies are examining to plan for any duties or tariffs.

MINI is currently making 360,000 cars a year in its Oxford plant and 70% of those are for export. MINI needs to plan ahead and make the tough decision of where to move their operations if the Brexit-triggered tariffs push through.