BMW to manufacture next-generation electric Mini in Oxford
BMW will on Monday announce plans to build its next-generation electric Mini in Oxford after securing a Government funding package, as exclusively revealed[1] by the Daily Mail and ThisisMoney over a week ago.
The German-owned brand will pump a multi-million pound investment – some of it taxpayer funded – into transforming the existing Mini Plant Oxford in Cowley. It will secure 4,000 jobs at the site.
This morning’s statement will end months of uncertainty over the fate of one of Britain’s biggest-producing car factories and be hailed as a vote of confidence in the UK and its motor industry.
Government sources have declined to set out the level of taxpayer support being offered to BMW, but did not dispute the previously reported figure of £75million.
The King, when he was prince of Wales, drives a Mini electric car during a visit to the Mini plant in Oxford (Peter Nicholls/PA)
In terms of production output, Mini is Britain’s third biggest car maker behind Nissan and Jaguar Land Rover.
In 2022, it manufactured a total of 186,222 vehicles, both Mini hatchbacks and Clubman estates.
Around 40,000 of these were electric Minis, though BMW bosses had already confirmed that manufacturing of the next-generation battery-powered hatchback will move away from Oxford this year.
The Cowley factory has been the production home of Mini’s previous-generation Mini Electric since 2019, however its new Cooper hatchback is set to built in China in a joint venture with car maker Great Wall.
The move has resulted in speculation about the future British car factory, though bosses told the Daily Mail and This is Money during this month’s Munich motor show that a deal to secure Plant Oxford was close.
When pressed at the unveiled on the next-generation Cooper and electric Countryman SUV – which is to be built in Leipzig, Germany – about whether some electric Minis could still be made in Britain, global head of the Mini brand at BMW, Stefanie Wurst, said: ‘Be patient.
‘There’s nothing I can tell you right now.’
But significantly she added with a smile: ‘We are a little bit further down the road and getting towards something.’
She stressed that Mini’s long-standing link to Britain was paramount, as is also the case for Rolls-Royce Motor Cars, which is also part of the BMW group and has seen production retained at its state-of-the-art Goodwood factory.
Asked if she thought this should also be the case for Minis, Wurst told us: ‘I do. It’s the right answer.
‘Minis must be built in Britain.’
She added: ‘Mini in the UK is regarded as your baby. Oxford is at the heart and soul of our brand.
‘It feels as if you have handed over your child for someone else to care for. We will take care of it.
‘Mini is special to Britain. It is precious. I want to respect that. We want to be true to it.’
She said the Anglo-German partnership worked well – with Britain known for its ‘quirky creativity’ and Germany for its engineering excellence. Both were needed for Mini to succeed around the world, she said.
Asked directly if Mini was safe in her hands and that of BMW she gave an unequivocal: ‘Yes.’
Business minister Kemi Badenoch is expected to visit the Oxford factory for the announcement of the investment, which the government said followed ‘extensive government engagement and support’.
Total investment to revamp the factory for new generation electric car production is likely to stretch to hundreds of millions of pounds – and possibly up to £1billion.
But the support of taxpayer-funded subsidies will help revamp the plant for electric car production, which may be linked to vital battery supply and production.
While the government has refused to divulge its amount of funding, its total investment into the automotive sector in recent years is set to surpass £6billion.
Rishi Sunak said the Government was securing jobs and growing the economy ‘by backing our car manufacturing industry’.
‘BMW’s investment is another shining example of how the UK is the best place to build cars of the future,’ the Prime Minister added.
Last week electric vehicle production also began at the Stellantis’s factory in Ellesmere Port[2] after an £100million investment, following doubts due to post-Brexit trading arrangements.
Vans such as the Vauxhall Combo Electric, Opel Combo Electric, Peugeot e-Partner, Citroen e-Berlingo and Fiat E-Doblo will be made at the Cheshire site.
Officially re-opening the former Vauxhall Astra production site, Chancellor Jeremy Hunt said BMW’s investment was a ‘huge vote of confidence in this country as a global leader in electric vehicles’.
The announcement also comes less than two months after India’s Tata said it will invest £4billion in an electric battery plant in Somerset[3] to supply its Jaguar Land Rover factories – a move seen as vital for the UK car industry’s continued survival in the electric age.
All will be a huge boost for the British car manufacturing sector, with figures last month suggesting production increased by almost a third last month[4] compared to a year ago.
The Society of Motor Manufacturers and Traders said it showed car makers continued their recovery from recent difficulties, including global chip shortages.
References
- ^ exclusively revealed (www.thisismoney.co.uk)
- ^ Stellantis’s factory in Ellesmere Port (www.thisismoney.co.uk)
- ^ invest £4billion in an electric battery plant in Somerset (www.thisismoney.co.uk)
- ^ production increased by almost a third last month (www.thisismoney.co.uk)