BMW says Brexit could cost auto industry 10-11 billion euros

[October 08, 2020]  FRANKFURT (Reuters) - BMW <BMWG.DE> Chief Financial Officer Nicolas Peter on Thursday said Britain's separation from the European Union could cost carmakers and suppliers up to 11 billion euros unless cross-border trade remains tariff-free and unbureaucratic.

The BMW logo is seen on a steering wheel during the media day of the 41st Bangkok International Motor Show after the Thai government eased measures to prevent the spread of the coronavirus disease (COVID-19) in Bangkok, Thailand July 14, 2020. REUTERS/Jorge Silva

BMW has spent a low double-digit million euro amount this year to prepare for Brexit, Peter told journalists during a virtual roundtable discussion on Thursday.

"The auto industry association ACEA has estimated that it could cost carmakers and suppliers 10 to 11 billion euros," Peter said.

"We need tariff-free trade. And even then, it needs to be seamless. We have a just-in-time manufacturing system so the administrative processing at customs needs to be efficient."

Furthermore Britain should continue to keep pace with European Union emissions requirements so that carmakers can offer the same cars in all European markets, Peter said.

Strong demand for electric and hybrid cars has helped BMW stay ahead of projected fleet emissions reduction targets for 2020, Peter said.

(Reporting by Edward Taylor; editing by Thomas Seythal)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.