BMW has put a £600 million investment plan on hold for the production of electric Mini cars in Oxford, casting doubt on the future of the historic plant as the automotive industry contends with a slower transition from petrol vehicles than anticipated.
The reassessment of this investment follows a string of setbacks for the UK’s automotive sector, with previous shutdowns of plants by Honda, Ford, and JLR over the last decade. In November, Stellantis attributed the UK’s electric vehicle sales targets as the reason for its decision to close its van factory in Luton, risking approximately 1,100 jobs.
A representative from the German car manufacturer stated, “Given the multiple uncertainties facing the automotive industry, the BMW group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.”
Automobile companies have been urging the UK government to soften its electric vehicle targets, which demand that a specific percentage of each carmaker’s annual vehicle sales must be zero-emission. These targets are set to increase from 28 percent this year to 80 percent by 2030, with penalties of £15,000 for each target not met.
Although electric vehicle sales are rising in the UK, they remain below the official targets, leading manufacturers like Nissan to warn that jobs could be endangered if the government does not ease its EV rules.
BMW’s 2023 plan was to manufacture two new electric models—the three-door Mini Cooper and the smaller Mini Aceman—at the Cowley site, aiming to secure the factory’s future by moving away from petrol cars, which BMW plans to phase out by 2030.
These models are based on a system developed by BMW and China’s Great Wall Motor. Currently manufactured in China and sold in the EU, these models face higher tariffs due to Brussels imposing increased duties on Chinese electric vehicle imports in October.
In the previous year, registrations of new Mini cars in the UK dropped by 1.3 percent to 46,975 vehicles, according to the Society of Motor Manufacturers and Traders. Data from Schmidt Automotive Research indicated a 4.9 percent increase to 36,932 vehicles for 2024 registrations of electric Mini cars in Western Europe, including the UK.
The news about BMW’s plans was initially reported by Auto Express.
Last week, the government concluded a fast-track consultation with the auto industry on how to enhance flexibility in the scheme to provide manufacturers with more leeway. The Department for Transport acknowledged the global challenges faced by car manufacturers and its intentions to address these while safeguarding jobs.
Following the consultation, Ford UK leader Lisa Brankin advocated for purchase incentives and additional government support, expressing concern that the “adoption of electric vehicles isn’t happening fast enough.” Last year, Ford announced 800 job reductions in the UK due to slower-than-expected electric vehicle sales.
