BMW to shut UK Mini factory for one month immediately after Brexit amid 'no-deal' fears

BMW has said it will temporarily halt production at its British Mini plant immediately after Brexit day as part of contingency plans for a “no-deal” divorce.

The car giant is bringing forward the annual shutdown period at its Oxford plant amid rising fears the UK could crash out of the EU without securing a deal.

Carmakers generally close their factories over the summer for a few weeks to allow for retooling and repair work as many staff take holidays and sales are at their lowest level.

"We have scheduled next year’s annual maintenance period at MINI Plant Oxford to start on 1 April, when the UK exits the EU, to minimise the risk of any possible short-term parts-supply disruption in the event of a no-deal Brexit," BMW said.

"While we believe this worst case scenario is an unlikely outcome, we have to plan for it."

Britain is due to leave the EU on March 29 next year, but Theresa May faces a battle to agree a deal with Brussels before that date.

BMW’s announcement shows the firm is concerned about how disruptive a “no-deal” Brexit could be, and its lack of confidence that a deal will be reached.

Carmakers are worried that Brexit may impose customs checks on parts and finished models, adding costly delays to the manufacturing process.

The automotive sector, which employs more than 850,000 people in Britain, has warned that extra costs risk the viability of production sites.

Britain's biggest carmaker Jaguar Land Rover said on Monday that it would go down to a three-day week at its Castle Bromwich plant from October until the beginning of December, after warning about the impact of Brexit and diesel policy.

BMW said it was sticking by its British production sites, which also include a Rolls-Royce car facility, an engine facility and a fourth site which houses a press shop and sub assembly.

"We remain committed to our operations in Britain, which is the only country in the world where we manufacture for all three of our automotive brands," BMW said.