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British automakers take costly precautions as Brexit 'no deal' fears grow

LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.

Honda releases H2O brand bottled water to promote FCX Clarity

Remember when Hollywood stars Diane Kruger (Inglourious Basterds) and Joshua Jackson (Fringe) took a Mercedes-Benz B-Class F-Cell into Death Valley and "survived" by drinking water from the car's tailpipe? Honda has taken that idea into movie theaters in Australia. The idea, but not fuel cell water itself. Honda has created a bottled water brande called H2O, and it's meant to promote the hydrogen-powered Honda FCX Clarity as part of Honda's "clever thinking" campaign. The headline message, just as it was for Mercedes, is that a hydrogen fuel cell car emits nothing but water vapor, which is actually safe to drink. To give movie fans a hands-on experience, Honda Australia filled a number of Palace Cinemas movie theaters with free disposable bottles of H2O water. Of course, since there are only a handful of FCX Clarity vehicles in the world today and it would take a lot of driving to fill up that many bottles, Honda admits that, "if you're holding a bottle of our specially produced H2O water in your hand right now, you've been drinking plain old spring water. If you want to taste the real thing, you'll have to travel to California, Japan or the UK where the FCX is currently available." Of course, why anyone would want to associate themselves with the unending waste that is bottle water, a product that has not proven itself to be any better than good tap water, is beyond us. But that's what Honda is doing, as you can see in the promotional video about the stunt below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

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