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

BMW 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.

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.