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6 December 2018
BREXIT AND ITS CONSEQUENCES FOR BMW GROUP
DR. MAURUS UNSÖLDGOVERNMENTAL AND EXTERNAL RELATIONSBMW GROUP
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UK IS THE 4TH LARGEST SALES MARKET FOR UK.UK PRODUCTION SITES MAINLY PRODUCE FOR EXPORT (EU AND ROW).
Sales Production and Export Destinations
EU
US
EU
UK
BMW 89% from EU,
rest from USA
MINI 72% from UK,
rest from EU
RR 100% from UK
To UK42%
To EU58%
Hams Hall
To UK20%
To EU38%
To RoW42%
Oxford
To UK10% To EU
12%
To RoW78%
Goodwood
National Sales Company
To UK55%
To EU35%
To RoW10%
Swindon
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GLOBAL SUPPLY CHAINS: MINI 5-DOOR IS PRODUCED IN OXFORD BUT PARTS/COMPENENTS ARE SOURCED GLOBALLY.
BMW 1.6l
gasoline engine
Coolant pump
with thermostat
Leather seatSound
systemSport steering
wheel
Cylinder head
Pressure pipe
condensator
Tyre pressure / brake
pressure gauge
EU components: ~70% (tariffs: 0%)
MINI exports to EU: ~40% (EU tariffs: 0%)
Compression
spring
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COMPLEXITY OF THE BMW PRODUCTION NETWORK IS VERY HIGH. THE CRANKSHAFT CROSSES THE CHANNEL FOUR TIMES.
Crankshaft
component1
Crankshaft
2
MINI engine
3
MINI
4
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MORE THAN 260 LORRIES CROSS THE CHANNEL EACH DAY JUST FOR BMW.AFTER BREXIT CUSTOMS CONTROLS WILL HAVE TO BE ESTABLISHED.
Parts for production
> 100 suppliers
80.000 MINI
170.000 BMW
and MINI
Parts for production
> 1.500 suppliers
LORRY DELIVERIES EU UK
148
100
24
22
3
2
TOTAL
Plant Oxford
Plant Hams…
Plant…
Plant Swindon
UK-suppliers
LKW/Tag
EU to UK
116
73
16
15
3
9
TOTAL
Plant Oxford
Plant Hams Hall
Plant Goodwood
Plant Swindon
UK-suppliers
LKW/Tag
UK to EU
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BREXIT.CONTINGENCY MEASURES?
CONTINGENCY MEASURES:
Re-scheduling of annual scheduled maintenance
periods in British production plants
Strengthening of internal customs departments
Modification of IT systems and structures
Usage of particular customs procedures
(inward/outward processing)
Extended warehouse capacity