Rolls-Royce Says Production Could Be Crippled By Brexit Issues

Rolls-Royce chief executive Torsten Müller-Ötvös says the British automaker’s plant in Goodwood could be crippled by potential Brexit complications.

These fears only multiplied today after UK Prime Minister Theresa May suffered a devastating legislative defeat when the Parliament rejected the deal with the European Union on the terms of Brexit by 432 to 202.

The automaker’s just-in-time production system means it doesn’t typically hold parts for more than 24 hours and this method of production could be harmed by Brexit, whether or not the UK reaches a deal with the European Union.

In preparation for a no-deal Brexit on March 29, Rolls-Royce has started to train suppliers in new import procedures, is investing in new IT systems, and preparing to have certain parts flown in from overseas if port deliveries are delayed due to customs issues.

“You can plan for whatever you want but you can’t store up weeks of parts, and if the logistics chain breaks it will affect production.

“You only need to miss one component and you can’t finish the car,” Müller-Ötvös revealed to Autonews Europe.

Only 8 per cent of Rolls-Royce parts are produced in the UK. As such, the company imports roughly 32,000 parts from more than 600 global suppliers to build its vehicles. The company undertakes 35 truck journeys across the English Channel per day to ensure production runs smoothly.

British Prime Minister Theresa May has proposed an exit agreement with the European Union but it’s expected to be rejected by national lawmakers.

While Rolls-Royce is aware that its production could be harmed by the UK leaving the EU, Müller-Ötvös said that there’s no chance the car manufacturer will shift production outside of Britain.

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  • Blade t

    I guess some super rich people might get their super expensive suv a little later…

    • Bash

      Or put their money somewhere else.

      • Knotmyrealname

        Super rich people don’t care where a few hundred thousand pounds go. It’s like buying a coffee to them. Don’t think for a minute that these cars impact them financially – they’re just trinkets.

        • Bash

          True..

  • I’M SURPRISED AT THE LOW PERCENTAGE OF HOME GROWN PARTS.

    • BlackPegasus

      Ikr.. 32,000 imported parts and 600 global suppliers? Da fuq! 🥺

    • ➡️ProtectOurHeritage⬅️

      Many of us here in the UK are surprised the number is as high as 8%.

      • Ouch!

        It’s a pity that those successful 8% as UK businesses get treated with such demoralising throw away comments.

        Please don’t also do the work of those who don’t care what the % of UK content is.

  • PK

    what is this brexit? i hear alot about it but i don’t understand it.

    • ➡️ProtectOurHeritage⬅️

      Brexit is short for “British exit” – and is the word people use to talk about the United Kingdom’s decision to leave the EU.

      The EU is a undemocratic-political union of 28 countries which trade with each other and allow citizens to move easily between the countries to live and work. The UK joined the EU, then known as the EEC (European Economic Community), in 1973.

      A public vote – called a referendum – was held on Thursday 23 June 2016 when voters were asked just one question – whether the UK should leave or remain in the European Union. The Leave side won by nearly 52% to 48% – 17.4m votes to 16.1m – but the exit didn’t happen straight away. It’s due to take place on 29 March 2019.

      • Rufus

        ”undemocratic – political union” it’s the incredible bullshit ignorant brexiters believe. Ignorant because there is a parliament elected and voted by EU citizens and the EU Commission where each member is the expression of the government of each EU state member. Brexit it means that UK will not be part anymore of the democratic process that drive every decision on political, health, economic issues and regulations. UK will stand by itself instead be member of the of a union of roughly 450 million of inhabitants compared to 64 million of the UK. It means that UK won’t be able to have free access at EU market (duty) no free movement of the person in EU like before, no access to aid programs, Eu investments etc etc. London won’t be anymore the financial platform where each country of the world desire to make business with the EU, it means that all the foreigners financial companies are moving their HD to Frankfurt already. UK will be able to import and export by itself in all the countries of the lost empire like before the brexit but will different costs that will impact to the consumers. The British pound is not as strong as was before . Sorry for my rough english.Sorry for who believe in Europe in the UK. que Will Scotland be still part of the UK in the next years?

      • Silimarina

        “EU undemocratic…” just like Rufus said, BS.

        • ➡️ProtectOurHeritage⬅️

          Yet, you provide no reason why.

          • Silimarina

            I don’t know maybe the fact that I live in a EU country and I know for a fact that every EU country has representatives in EU parliament voted by the people from the country they represent

      • blunt-o

        And the US is democratic with its domestic and foreign lobbies, its ignorant and brainwashed voters such as yourself, its discouraging Black and Latino voters to exercise their rights, its repulsive White supremacists such as yourself, and the absolute rule of the military-corporate complex ?
        yeah right gringo!

        • ➡️ProtectOurHeritage⬅️

          I’m not American.

    • Knotmyrealname

      I think Google is your friend on this matter. Plenty of information since 2016.

      • PK

        lazy.

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