BMW Halts Electric Mini Production in Oxford
BMW has decided to postpone the start of electric vehicle (EV) production at its Mini plant in Oxford, a move that casts a shadow over the UK’s shift towards EVs. The German carmaker, which owns Mini, is putting a £600 million investment on hold. This decision is attributed to unspecified “multiple uncertainties facing the automotive industry”. The announcement raises questions about the UK’s transition to electric vehicles.
The decision comes as a setback, especially as BMW had plans to upgrade the Cowley plant for battery-electric Mini production which was announced last year. This project, which was supported with government-backed funding, was anticipated to create 4,000 jobs and significantly advance the plant’s transition to an all-electric future by 2030. BMW is now reviewing the timeline for producing battery-powered Minis in Oxford. The company stated that it is in “close dialogue with officials”.
The Cowley plant will continue manufacturing internal combustion engine Minis while BMW reconsiders its EV strategy. Despite the delay, BMW stated that some of the investment is still progressing, including a ‘state of the art logistics facility.’ The original plan for the production of two new electric Mini models was scheduled to begin in 2026, but these plans are also uncertain. BMW has decided not to accept the previously announced £60m government grant.
This delay arises amidst larger concerns about electric vehicle production targets within the UK automotive industry. Under the zero emission vehicle (ZEV) mandate, car manufacturers must increase the percentage of electric vehicle sales. There has also been a decrease in consumer demand for EVs, influenced by worries about charging infrastructure and the costs associated with moving away from petrol and diesel vehicles. The UK government is currently reviewing its EV policies and is consulting on reinstating the original 2030 ban on new petrol and diesel cars, a policy previously introduced.
