Between labor problems and Brexit, BMW Group production in the United Kingdom is less certain than it used to be. Once the trade agreements between the not-so-United Kingdom and the European Union are void after the UK exits the EU, new agreements must be negotiated—and the BMW Group, which has a number of production facilities in England, doesn't really know what the regulatory or financial situation will be. While continued production of BMW Group products there is likely, the company is already planning on alternative locations for certain future models, like the electric Mini. A more immediate problem has to do with labor relations and pension plans.
Currently, the BMW Group makes about 4,000 Rolls-Royce cars near Goodwood. Another 210,000 Minis are constructed each year at the BMW Group's Oxford, England plan, while more than 250,000 engines—mostly for Minis but also for some BMWs—come off the line at the BMW Group's Hams Hall engine plant near Birmingham, England.
The BMW Group told its labor force in Great Britain that it wants to discontinue two salary pension plans and move those workers to the same less-generous plan in which new workers since 2014 have been enrolled. Naturally, those more senior workers don't like that deal and have voted for up to eight strikes over the next few weeks.
The first walkouts may happen at the Oxford Mini plant, the Hams Hall engine works, and a Mini pressing plant in Swindon. Up to 3,500 workers could be involved.
The BMW Group has stated that it wants to take action now to make its long-term pension plans viable, but it is still willing to talk with labor. A BMW spokesperson was quoted by Automotive News as saying, "The company has put a number of options on the table to help employees transition to the proposed new pension arrangements and it remains open to negotiation."
What happens at BMW Group factories in Britain could have a more far-reaching effect in other markets. At a time when the BMW Group wanted to concentrate on improving sales and developing innovative autonomous and electro-mobile vehicles on the design and engineering side, it didn't need Brexit or labor problems in the U.K. Now we will see how innovative and flexible the BMW Group can be on the business side.—Scott Blazey
[Photos courtesy of BMW AG.]
