BMW has warned that it may shift Mini production out of the UK in the event of a no-deal Brexit.

BMW has indicated a no-deal Brexit could spell the end of Mini production in the UK

Speaking to Sky News at the Geneva Motor Show, Peter Schwarzenbauer, the German car giant’s board member responsible for Mini and Rolls Royce cars, said the firm would “need to consider” moving production from the UK as the company could not absorb the extra costs they would inevitably face.

The warning is the latest in a long line from carmakers with UK operations concerned about the risks presented by a no-deal Brexit; in a survey late last year three-quarters of carmakers in the UK said a ‘no-deal’ Brexit would hit their business, impacting on profitability and future investment.

In an official statement, BMW said: “As a major employer, exporter and investor, the BMW Group remains committed to the UK. With four plants producing vehicles, components and pressed parts for all three of our automotive brands, the UK also plays an important role in the BMW Group’s production network.

“Until we have clarity on the UK / EU trading relationship from April onwards, as a responsible employer we must continue to plan for the worst-case scenario, which is what a no-deal Brexit would represent.

“Our production system is designed to be highly flexible, so that we can respond quickly to changing market demand. This is especially important in a volatile, fast-changing environment.

We are currently going to great lengths to prepare our production network for the impact of Brexit. The aim is to ensure, as far as possible, that the locations concerned can continue production after Brexit without unnecessary disruption. This process requires considerable effort on our part.”