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BMW's Mini plant closes for 4 weeks for the Brexit that didn't happen

LONDON — BMW's Mini plant in Britain is closing for four weeks starting Monday in a move planned over a half year ago to help the company deal with any disruption resulting from Brexit, which has since been delayed. The German carmaker, which builds just over 15 percent of Britain's 1.5 million cars, moved its annual summertime shutdown to April to "minimize the risk of any possible short-term parts-supply disruption in the event of a no-deal Brexit." But Britain's departure from the EU has now been pushed back from March 29 until at least April 12 or potentially much later, scuppering the timing of major contingency plans for some carmakers. Shutdowns are organized far in advance so employee holidays can be scheduled and suppliers can adjust volumes, making them hard to move. "This is what our company and our workforce have planned for over many months, and it is fixed into our business planning," said a BMW spokesman. It represents the latest headache for Britain's once roaring car sector which had been on track for record production but since 2017 has posted sharp falls in sales, output and investment. The overwhelmingly foreign-owned industry has become increasingly incredulous as a stable and attractive investment environment descends into one of its deepest political crises, risking the free and frictionless trade the sector relies on. BMW's Rolls-Royce factory in Goodwood will close for two weeks whilst Jaguar Land Rover's (JLR) three car plants and engine facility and Honda's Swindon facility will also shut for a few days this month as part of Brexit contingencies. It has been a turbulent few months for the sector after Nissan canceled plans to build a new sport utility vehicle at its English Sunderland plant and Honda said it would shutter its plant in 2021 in the biggest blow to the sector for years. Toyota provided a rare boost when it announced plans to build cars for Suzuki at its English car plant. BMW, which is also closing its central English Hams Hall engine facility and Swindon press shop and sub-assembly site for four weeks, has said it could move some engine and Mini output out of Britain if there is not an orderly Brexit. Carmakers face a number of risks if there is a disorderly Brexit, including delays to the supply of ports and finished models, new customs bureaucracy, the need to recertify models and an up to 10 percent tariff on finished vehicles.

BMW discussing new plant with Mexican authorities

Drawn in by low wages and manufacturing costs, BMW could be the next automaker to set up a manufacturing facility in Mexico. Automotive News is reporting that the German automaker has had discussions with local Mexican governments regarding a possible assembly plant, but there is no word as to when a decision may come down. Last we heard, BMW was reportedly looking to build the 3 Series in Mexico.
A key determining factor for this new plant is a free-trade agreement between the US and Europe, which according to the article, would give BMW better "flexibility and cost structure" to open another plant in North America. In terms of luxury automakers, Audi is currently building a new plant in Mexico and Mercedes-Benz is considering opening one in conjunction with Nissan for the CLA-Class, and in the bigger picture, Honda and Mazda are also preparing to kick off vehicle production in Mexico.

BMW recalls 2016 7 Series because airbags might not deploy

The Basics: BMW will recall 6,110 units of the 2016 7 Series, including versions of the 740 and 750 models with production dates from July 1, 2015, to December 11, 2015. The Problem: The luxury sedans have an airbag control module that could randomly reset because of an electrical short. If a driver has an accident while the system is resetting, then the airbags might not deploy. Injuries/Deaths: None reported. The Fix: Dealers will replace the air bag control module. If You Own One: The recall will begin on May 16. Related Video: RECALL Subject : Air Bags may not Deploy due to Residue on Module Report Receipt Date: MAR 25, 2016 NHTSA Campaign Number: 16V173000 Component(s): AIR BAGS Potential Number of Units Affected: 6,110 All Products Associated with this Recall Vehicle Make Model Model Year(s) BMW 740LI 2016 BMW 750LI 2016 BMW 750LXI 2016 Details Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America, LLC (BMW) is recalling certain model year 2016 740Li, 750Li, and 750Lxi vehicles manufactured July 1, 2015, to December 11, 2015. The affected vehicles have an air bag control module that may randomly reset due to an electrical short circuit as a result of residual metallic particles from the manufacturing process. CONSEQUENCE: In the event of a crash while the air bag module is resetting, the air bags may not deploy, increasing the risk of occupant injury. REMEDY: BMW will notify owners, and dealers will replace the air bag control module, free of charge. The recall is expected to begin May 16, 2016. Owners may contact BMW customer service at 1-800-525-7417. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.