Brexit Hits European Car Industry... BMW to Halt Mini Countryman Production in the Netherlands

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[Asia Economy Reporter Kwon Jae-hee] BMW will stop producing the Mini Countryman in the Netherlands starting in 2024. BMW is expected to increase production at its factory in the United Kingdom.

On the 15th (local time), according to European local media, BMW announced that it will not renew its contract with Nedcar, a subcontractor in the Netherlands. Instead, BMW announced that it will increase production at its Mini factory located in Oxford, UK. With the possibility of a no-deal Brexit (the UK's withdrawal from the European Union) raised, automakers concerned about tariffs have decided to produce in the UK.

BMW stated, "Due to the ongoing COVID-19 pandemic, we are conducting a comprehensive review," adding, "Market development and responding to customer demand are the reasons behind this decision."

This announcement by BMW is expected to be a positive development for the UK automotive industry, which has experienced investment outflows since the UK announced Brexit in 2016.

In addition to BMW, some other automakers have decided to invest in the UK. However, projects have been put on hold until trade conditions with Europe become clear after Brexit.

PSA stated that if trade conditions are unsatisfactory, it will move production of the Vauxhall and Opel Astra models from Ellesmere Port in the UK to mainland Europe, and Nissan has postponed production of the new Qashqai vehicle, which was to be produced in Sunderland, until mid-next year.

BMW Mini models are produced in the UK, the Netherlands, China, and other locations. Last year, more than 175,000 vehicles, including the Mini Convertible, Mini Countryman, and BMW X1, were produced at the UK factory.

Due to the COVID-19 pandemic causing some factories to shut down, BMW's sales performance in the first to third quarters of this year decreased by more than 12% compared to the same period last year. BMW is considering transitioning to electric vehicle production within the next 10 years.

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