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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.

BMW shuffles chairs in its design department

BMW Group has made some changes to its design team since August 1, and has shuffled top personnel to different positions at BMW Design, Mini Design and Rolls-Royce.
The BMW Design team led by Karim Habib (middle, right) gains a new head of Exterior Design in Domagoj Dukec (right), who has worked for the exterior design team since 2010 and shaped the Concept Active Tourer.
Oliver Heilmer (left), who has worked for BMW's interior design unit since 2000 and designed the 5 Series interior, replaces Marc Girard as head of Interior Design BMW Automobiles. Marc Girard goes to manage BMW's subsidiary design group, BMW DesignworksUSA.

Mini may have overexpanded, some models may not be replaced

Surprise, surprise. According to Edmunds, Mini may be looking to reduce the number of vehicles in its range, which has recently expanded to include a total of seven offerings (not to mention the copious varieties of configurations found within each line). When Mini relaunched in the early 2000s, it did so with one model, the Cooper Hardtop, and has since added the Convertible, Clubman, Countryman, Coupe, Roadster and Paceman. It looks like those ambitions of expanding the range to include up to 10 models may have been a bit optimistic.
"When we start to replace models, I think you will see that we won't replace every model exactly," Jim McDowell, Vice President of Mini USA, told Edmunds in an interview. The brand's core models right now are the Hardtop and Countryman, and of the roughly 66,200 vehicles that Mini sold in the United States last year, these two vehicles accounted for some 75 percent of total sales.
McDowell declined to mention any specific models that may not be replaced in the lineup's next generation, though our best guess is that ultra-niche vehicles like the Coupe (pictured) or Clubman. As for replacing some of the current models with new products, the only clear gap we can see in the brand's lineup is a smaller car like the Rocketman concept, though we've been told several times that a mini-Mini isn't going to happen. Be sure to let us know what Mini models you'd like to see kept or axed in Comments below.