BMW Group has announced that it plans to invest more than £600 million in its Oxford and Swindon MINI factories to develop a “new generation of electric MINIs”.
With the ban on Internal Combustion Engine (ICE) car sales coming into force in 2030, many car manufacturers are preparing for the transition, and BMW says that by 2030, production at its UK factories will be exclusively electric.
BMW says it is gearing up to build two new all-electric models of MINI from 2026: the MINI Cooper 3-door and the compact MINI Aceman. By 2030, BMW says it will have spent over £3 billion on its Swindon, Hams Hall and Oxford plants since 2000.
BMW says the development of its UK plants “has been supported by the UK Government”. The Financial Times reported that “The investment by the German carmaker at the site in Cowley will be backed by about £75 million of taxpayer funds, according to people familiar with the matter.”
The Oxford MINI plant has also recently celebrated its 110th anniversary this year, and has been producing the MINI Electric since 2019.
Prime Minister Rishi Sunak hailed the announcement, saying it was a “major vote of confidence in our car sector”.
The Mini is a British classic.
— Rishi Sunak (@RishiSunak) September 11, 2023
So it’s fantastic to see @BMWGroup backing its future here with a £600 million investment 🚀
This is a major vote of confidence in our car sector which will support high-quality jobs and grow our economy.https://t.co/38EdCEeq2F
Business and Trade Secretary Kemi Badenoch said, “This decision is a big vote of confidence in the UK economy and the work of this Government to ensure the continued strength of our world-leading automotive sector. We are proud to be able to support BMW Group’s investment, which will secure high-quality jobs, strengthen our supply chains and boost Britain’s economic growth.”
Stefanie Wurst, head of the MINI brand, said, “MINI has always been aware of its history – Oxford is and remains the heart of the brand. I am delighted that the two new, fully electric MINI models – the MINI Cooper and MINI Aceman – are also being produced in Oxford, thereby confirming our path to a fully electric future. The continuing high demand for our locally emission-free vehicles shows the openness of the global MINI community to electromobility, which we will be able to serve optimally, also thanks to Oxford”.
BMW says the Oxford plant will “reach a production capacity of around 200,000 cars per year in the medium term, with ICE and battery electric vehicles initially being built on the same production line.”
In July, Tata Group, the parent company of Jaguar Land Rover, announced a $4 billion investment to build an EV battery factory in Somerset.
However, there has been concern in recent months that the UK lacks incentives to encourage companies to invest in renewable technology production, with both the EU and US attracting investment with landmark legislation like the 2022 US Inflation Reduction Act.