BMW has put the brakes on plans to spend £600m to reintroduce Electric Mini production at its Oxford plant, saying it is pausing the investment due to “multiple uncertainties facing the automotive industry.”
BMW revealed back in September 2023 that it would spend £600m upgrading its Oxford plant to ready it to produce the new generation of electric Minis, safeguarding up to 4,500 jobs in the process.
The new announcement puts the future of the historic plant once more under threat, as the car industry faces up to the reality that electric vehicles (EVs) are not proving as popular among consumers as previously hoped. Indeed, data last month from the Society of Motor Manufacturers & Traders (SMMT) revealed that battery electric vehicle (BEV) sales, while encouraging, fell short of the government’s mandated target for 2024
“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 German carmaker said in a statement.
BMW also confirmed that it had decided to not accept a related £60m grant from the government, adding that it will remain in “close dialogue” about its future plans.
Production of two new electric Mini models had been due to commence at the Oxford plant in 2026. In the meantime, the plant will continue to make Minis with internal combustion engines.
“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,” BMW added.
A Department for Transport (DfT) spokesperson said: “We recognise the global challenges car manufacturers face and have listened to their concerns by consulting on reinstating the 2030 EV deadline whilst also protecting jobs – a decision supported by a majority of manufacturers who have been working towards this date, and are on track to meet their ZEV mandate targets.
“We’re investing over £2.3bnn to support industry and consumers make the switch, tapping into a multibillion-pound industry that will create high paid jobs for decades to come, make the UK a clean energy superpower and help deliver our Plan for Change.”
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