BMW is considering taking on the Honda plant in Swindon as a base from which to produce its X1 SUV, Autocar has reported.
But the German car giant says there are no plans to open new plants.
Autocar has reported this morning that sources say BMW is in discussions about potentially taking over the South Marston plant. Honda, which currently produces the Civic at the Swindon factory, is expected to move out by 2021.
BMW builds the Mini at its massive plant in Cowley, Oxford. Panels for the cars are made at a pressing plant in Stratton.
A BMW spokeswoman said: "There are currently no plans for additional plant locations."
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Dave Leggett, automotive editor at analysts GlobalData, said: “Restructuring in the UK auto sector could play out in unforeseen ways as trading conditions change due to Brexit. BMW will be looking at its pan-European production structure and the UK is its second biggest European market. Making more cars in the UK is one way to hedge against the possibility of higher costs on UK-EU trade and currency fluctuations."
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