FRANKFURT -- BMW would reduce output at its Mini plant in Oxford, England, by eliminating a work shift should the UK opt for a hard Brexit, according to its chief financial officer.
BMW already plans to suspend Mini production on the Oct. 31 deadline when Britain is expected to leave the European Union, as well as on Nov. 1, CFO Nicolas Peter told reporters on Tuesday on the sidelines of the Frankfurt auto show.
“We would have to increase prices, and we have to curtail production to react to such a development,” Peter said on BMW’s contingency plans should the U.K. drop out of the EU without an agreement. “The plans are in the drawer.”
Suspending production on the date of Britain's scheduled departure from the EU and the following day would shield BMW from logistics problems, he said.
BMW has set aside 300 million euros ($331 million) to deal with any Brexit-related costs.
Peter also confirmed BMW's 2019 financial targets, but said it was too early to make a forecast for 2020 which would partly depend the developments in the trade dispute between the United States and China.
Carmakers have for over a year warned a no-deal Brexit would mean shifting production out of the UK.
Toyota said last week it would stop production at its Burnaston factory in England on the day of departure.
Toyota builds the Corolla and Avensis models in the UK.
Bloomberg and Reuters contributed to this report