German automaker BMW plans on ceasing production at its outsourced plant in Born, Netherlands, which is operated by VDL Nedcar.
The plant has a production capacity of 200,000 units per year and according to media reports BMW plans to shut down production gradually over the next three years.
The German firm plans to produce all the models that VDL currently makes in-house at its factories in Munich, Dingolfing, Regensburg, and Graz. The move is in line with the impact of the COVID-19 pandemic on the automobile industry in the EU and the rest of the world. Apart from this, the shift to electric vehicles means more use of automation and less manpower in production.
The VDL plant employs 4,600 workers who will lose their jobs if the company fails to secure orders for new cars from other manufacturers in the near future. BMW has availed VDL’s manufacturing services since 2014 for cars such as the X1 and its subsidiary brand Mini’s Countryman and Convertible models.