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MAHLE Brexit reminder

MAHLE Brexit reminder

Dear Madam or Sir,

With the Brexit, the United Kingdom will leave the European Union by 29th March 2019 at the latest.

As of today, a "no deal I hard Brexit" scenario (a withdrawal of United Kingdom from the European Union without any agreement on the future relations or a transition period) is becoming more and more likely. Therefore, a sufficient preparation for this Brexit scenario and its consequences
is of high importance.

MAHLE procures goods from your company, which may be affected by this future cross-border goods traffic and may be affected by customs supervision - be it directly or indirectly due to your supply chain exposure. We would like to express our sincere expectation, that you undertake all necessary steps and have procedures in place to continue to fulfill all contractual obligations owed to MAHLE even in the event of a hard Brexit.

This applies particularly to the agreed delivery times, quality and quantities. Please note, that any failure to fulfil supply obligations in the event of a hard Brexit will not excuse performance or give you any possibility for additional termination rights.

In order to avoid such a situation, we expect that you reach out to your known MAHLE contacts to mutually find solutions where foreseeable and unforeseeable risks may become apparent. This of course does not relieve you from your contractual obligation.

If you need any further information please do not hesitate to contact us.

Best regards

EGmbH

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