By Gareth Roberts
BMW is delaying the reintroduction of electrical vehicle production to its Oxford Mini plant as a consequence of “multiple uncertainties facing the automotive industry”.
The German manufacturer has decided to pause work on the £600 million upgrade of its factory in Cowley and never accept a related £60m grant from the Government.
BMW, the owner of Mini, said in an announcement: “Plant Oxford is at the center of Mini production, manufacturing and exporting a spread of models, that are wanted within the UK and around the globe.
“Nevertheless, given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.”
BMW announced the £600m investment within the Mini factories in Oxford and Swindon in 2023, to arrange for all-electric production from 2030.
The Oxford plant was gearing-up to construct two latest all-electric Mini models from 2026, the three-door Mini Cooper and the compact crossover Mini Aceman. A 3rd electric model, the Countryman, was as a consequence of be made in Germany.
BMW said much of its investment was still progressing, with construction “well under method to make the plant future-ready”, including a project to construct a brand new “state-of-the-art logistics facility”.
Nevertheless, the statement added: “We have now informed the UK government of our decision to review the timeline for reintroducing battery-electric production in Oxford.
“As a part of this discussion, we agreed to not take the previously announced grant, but we remain in close dialogue about our future plans.”
Carmakers have raised concerns over EV targets set out within the Government’s zero emission vehicle (ZEV) mandate.
It was blamed, partially, for the closure of Vauxhall’s factory in Luton by owners Stellantis.
A fast-track consultation on the ZEV mandate and ending the sale of latest internal combustion engine (ICE) cars from 2030, closed last week.
The Department for Transport (DfT) said it recognised the challenges automotive manufacturers were facing and was listening to concerns.
It said it was consulting on reinstating the 2030 EV deadline while also “protecting jobs”, a choice it said was “supported by a majority of manufacturers who’ve been working towards this date and are on target to fulfill their ZEV mandate targets”.
The DfT said it was investing greater than £2.3bn to support industry and consumers to make the switch to electric.
This Article First Appeared At www.am-online.com
