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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.

Psychology can wipe out 20-25% of your EV's range

There are two primary takeaways from a recent study of electric-vehicle driving habits in Germany. One: an electric vehicle with 25 percent of its battery charge left creates the same reaction in drivers as the fuel needle on "E" in a gas-powered car. Two: familiarity breeds comfort. The study, conducted by Germany's Technische Universitat Chemnitz and funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, put some real numbers on the concept of "range anxiety." According to Green Car Congress, that anxiety truly kicks in when there's less than a quarter of the driving range left on an EV's battery and the study found that a typical car's range is "shortened" by a 20 to 25 percent "psychological safety buffer." If we take the popular Nissan Leaf as an example, the official 84-mile single-charge range is really closer to 63 miles in the head of the driver. The longer the driver spent in the EV, the shorter his mental buffer became. The study was culled from data involving just 79 drivers who tooled around Berlin in Mini E EVs for about six months, collectively putting a quarter-million miles on the electric vehicles. The good news is that the longer the driver spent using the EV, the shorter his mental buffer became, which meant he could comfortably get more miles from the car. So, to all you EV advocates out there, know that once drivers spend some time with an EV, they get more and more used to what the car can do. It's a lesson we've learned before. Just remember that to new EV drivers, the single-charge range is a lot smaller than the one old-timers see.

BMW will invest $750 million to build Mini EVs in the UK

LONDON — BMW said on Monday it will invest 600 million pounds ($750 million) in its UK plants to take its Mini brand all-electric by 2030, giving a fresh boost to Britain's car industry after years of Brexit-related uncertainty. From 2026, the German premium carmaker will make two electric models at its Mini plant in Oxford — the Mini Cooper 3-door and the compact crossover Mini Aceman. The plant will make only electric models as of 2030 and many of those cars will be exported to markets around the world, BMW production chief Milan Nedeljkovic said. Speaking to journalists in Oxford, Nedeljkovic said the company wants to use batteries made in Europe in the new models made in Oxford, but did not specify whether they would come from the UK, saying it depending on the attractiveness of the market for its suppliers. The same two models will also be made in China and exports of those cars will begin in 2024. Also speaking in Oxford, British business minister Kemi Badenoch said: "We want auto manufacturing not just to stay in the UK, but to be the best in the world, and this is part of that story". Badenoch declined to comment on the level of subsidy to be received by BMW for Mini production, reported by British media to be 75 million pounds. BMW will also invest in its plant in Swindon which makes parts for Mini models. It was too soon to say what would happen to the engine plant in Hams Hall, near Birmingham, Nedeljkovic said. The small, fast and affordable original Mini went on sale in 1959 and has remained popular under BMW since it revived the brand in 2001, but its future in Britain has been uncertain for years, exacerbated by fears that Brexit would prompt the company to relocate production to Germany, China or elsewhere. Still, the industry remains on edge with both Britain and Europe's carmakers calling for a delay in the implementation of post-Brexit "rules of origin", under which 45% of the value of an EV being sold in the European Union must come from Britain or the EU from 2024 to avoid tariffs. "The [auto] industry is screaming at the EU," Badenoch said in Oxford, arguing that tariffs on EU and UK-made cars would only help Chinese manufacturers and that more time was needed to build local capacity. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.