By Gareth Roberts
BMW is delaying the reintroduction of electric vehicle production to its Oxford Mini plant due to “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 not accept a related £60m grant from the Government.
BMW, the owner of Mini, said in a statement: “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.”
BMW announced the £600m investment in the Mini factories in Oxford and Swindon in 2023, to prepare for all-electric production from 2030.
The Oxford plant was gearing-up to build two new all-electric Mini models from 2026, the three-door Mini Cooper and the compact crossover Mini Aceman. A third electric model, the Countryman, was due to be made in Germany.
BMW said much of its investment was still progressing, with construction “well under way to make the plant future-ready”, including a project to build a new “state-of-the-art logistics facility”.
However, the statement added: “We have informed the UK government of our decision to review the timeline for reintroducing battery-electric production in Oxford.
“As part of this discussion, we agreed not to take the previously announced grant, but we remain in close dialogue about our future plans.”
Carmakers have raised concerns over EV targets set out in the Government’s zero emission vehicle (ZEV) mandate.
It was blamed, in part, 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 new internal combustion engine (ICE) cars from 2030, closed last week.
The Department for Transport (DfT) said it recognised the challenges car manufacturers were facing and was listening to concerns.
It said it was consulting on reinstating the 2030 EV deadline while also “protecting jobs”, a decision it said was “supported by a majority of manufacturers who have been working towards this date and are on track to meet their ZEV mandate targets”.
The DfT said it was investing more than £2.3bn to support industry and consumers to make the switch to electric.
