BMW Hits the Brakes on Mini EV Production in Oxford

BMW confirmed pausing plans to introduce electric vehicle (EV) production at the MINI brand’s plant in Oxford citing "multiple uncertainties facing the automotive industry."

In turn, this has halted initial upgrade plans for the Cowlet facility they’d reported worth some £600 million (RM3.3 billion).

The delay also means BMW will not be accepting a previously announced £60 million (RM335 million) grant from the UK government. However, the company says it remains in "close dialogue" with officials regarding its future plans.

Despite the setback, BMW emphasised that much of its investment in the plant is progressing. Construction is already "well under way" to modernise the site, including a new "state-of-the-art logistics facility" to support future production.

In 2023, BMW committed to a major investment to prepare the Mini factory for a new generation of electric models. Production of two new electric Mini models had been set to begin in 2026, but this timeline is now under review. Currently all Mini EVs are built in China.

A statement from BMW said: "Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which are sought after in the UK and around the world. However, given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford."

The delay comes amid a broader debate between the UK automotive industry and the government over electric vehicle targets. Car manufacturers have expressed concerns that the mandated number of electric vehicles they must sell in the coming years is too high.

Earlier this year, the government conducted a fast-track consultation on changes to the zero-emission vehicle (ZEV) mandate, which sets targets for EV sales. Last Nov, Stellantis cited the mandate as a factor in its decision to close its van factory in Luton.

The Department for Transport (DfT) acknowledged the challenges facing carmakers and said it was listening to their concerns. It also reaffirmed its commitment to supporting the transition to electric vehicles, stating that it is investing more than £2.3 billion (RM12.9 billion) to assist both industry and consumers.

The DfT is currently consulting on "reinstating the 2030 electric vehicle deadline while also protecting jobs." The department claims that most manufacturers support this timeline and are on track to meet their ZEV mandate targets.

For now, Mini's electric future in Oxford remains uncertain, but BMW insists it is committed to making the plant "future-ready" as it continues discussions with the government.

Source: BBC