BMW Group has announced a pause on its £600 million investment plan for the Mini car assembly plant located on the outskirts of Oxford. This decision is driven by declining demand in the electric vehicle (EV) market. Initially, BMW planned to upgrade its Cowley plant to produce electric Mini vehicles, a move supported by the UK government and expected to create 4,000 jobs in EV production. However, due to current uncertainties in the automotive industry, BMW is reassessing its plans for producing electric Minis at the Cowley facility.
The Oxford plant has been a central hub for Mini production, manufacturing and exporting popular models worldwide. Despite the investment halt, some construction projects at the plant, including a state-of-the-art logistics facility, will continue to prepare for future developments. BMW has informed the UK government of its decision to adjust the investment timeline and confirmed it will not accept previously announced government subsidies. The company will maintain close communication with the government regarding future plans.
During the investment pause, the Oxford plant will continue producing internal combustion engine Mini cars. The facility, with over a century of history and 4,500 employees, aims to transition to a fully electric vehicle production base by 2030. The pause raises questions about its future development and implies BMW may face longer-than-expected import tariffs.
BMW's initial £600 million investment plan was set to start producing electric Mini Cooper and Mini Aceman crossover SUVs at the plant by 2026. This marked a strategic shift from previous plans to move production to cost-effective Chinese factories. The investment included a £60 million taxpayer subsidy facilitated by then-Prime Minister Rishi Sunak's government.
Amidst these developments, the UK government has committed to banning new petrol and diesel car sales by 2030, requiring automakers to meet strict EV sales quotas. However, concerns over inadequate charging infrastructure and rising costs have dampened EV demand. The UK Department for Transport acknowledges these challenges and is investing over £2.3 billion to support the industry's transition, aiming to create high-paying jobs and position the UK as a clean energy leader.
