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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.

Judge to approve settlement of Mini CVT lawsuits

BMW has agreed to settle a number of class-action lawsuits out of court. The suits stem from drivetrain issues on the 2001 to 2006 R50 Mini Cooper - in particular, its continuously variable transmission. The transmission was known to fail, often without warning on otherwise healthy and well-maintained vehicles. This wasn't the only major issue to afflict the original BMW-era Mini models.
According to legal site Topclassactions.com, the suits alleged that BMW knowingly hid the defects in the CVT from customers while informing dealers of the issue. The first suit was filed in 2011, while four additional suits have followed. Now, BMW has reportedly settled, offering to reimburse 1,200 owners that needed repairs within eight years or 150,000 miles of their purchase. Repair prices for the transmission range from $6,000 to $9,000.
Under the agreement, BMW will also offer up to $4,100 to members of the suit that had fixes performed at a third-party shop, while owners who sold their cars at a loss due to the issues are slated to receive up to $2,000. Finally, owners who are part of the suit will be warrantied for a further eight years and 150,000 miles.

Next Mini Clubman nearly ready to haul

With the three- and five-door Mini Hardtop models successfully hitting the market and the pending arrival of the hot John Cooper Works model at next week's Detroit Auto Show, Mini can turn its eye toward another important model, in the form of its next-generation Clubman, which our spies have spotted testing on the roads of Germany. Aside from the rear barn doors, the next Clubman looks to have a lot in common with the new five-door Hardtop, which makes sense considering how much the current car has in common with the R56 that it's based upon. That similarity ends quickly once you take a look inside the cabin. The typically open Mini cabin is more dramatically segmented in the new Clubman, with a high transmission tunnel that separates the driver and passenger. In a worrying move for fans of parking lot shenanigans, Mini is moving to an electronic parking brake in its new model, although beyond that, the center stack is similar to the redesign Mini pushed through for this latest generation. As is the case with the current Clubman, the next-gen will likely share its engines and gearboxes with the Hardtop, meaning a base 1.5-liter, three-cylinder turbo in the Cooper Clubman and a 2.0-liter, turbocharged four-cylinder in the Cooper S Clubman. Six-speed transmissions, in both two- and three-pedal varieties, will likely also be offered. Check out our gallery of spy photos of the new Clubman, up at the top of the page.