6 December 2018

BREXIT AND ITS CONSEQUENCES FOR BMW GROUP

DR. MAURUS UNSÖLDGOVERNMENTAL AND EXTERNAL RELATIONSBMW GROUP

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

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

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

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

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