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BMW AG has delayed work on the next version of a Mini model due to uncertainties over the U.K.'s trade relations with the European Union.
The German automaker has extended the lifespan of the platform that underpins the Mini hatch for cost reasons and because of Brexit, according to a spokesman. Reuters reported the decision earlier Friday.
On the eve of the U.K. leaving the EU, British automakers warned a free-trade agreement with the bloc is needed to rekindle investment and stem tumbling production. Output already dropped more than 14% last year to 1.3 million cars, the lowest in a decade, the Society of Motor Manufacturers and Traders said. It's expected to drop another 2.3% to 1.27 million units in 2020.
The future of carmaking in the U.K. is at risk of unraveling if tariffs are imposed and supply chains are impacted by Brexit, the SMMT said. About 55% of all cars made in Britain are exported to the EU, and they're loaded with parts that often have traversed the border multiple times during the manufacturing process.
--With assistance from Siddharth Philip.
To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.net
To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Peter Vercoe, Ian Fisher
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