BMW has recently confirmed that it has delayed plans to restart electric vehicle (EV) production at its Oxford Mini plant.
The car manufacturer had planned a £600 million upgrade at its Cowley facility, but with industry EV challenges continuing, the decision has been made to pause the investment for now. As a result of the decision, BMW has also chosen to not take a £60 million government grant, although it has said that discussions with officials “remain open”.
The UK automotive industry continues its debate with the government over electric vehicle production targets. Car manufacturers have raised concerns that mandated EV sales targets, set under the zero-emission vehicle (ZEV) mandate, are too ambitious. Earlier this year, the government fast-tracked a consultation on potential changes to the policy, but the debate remains ongoing.
Last year, Stellantis said that the ZEV mandate was a key factor in its decision to shut down its Luton van factory.
In a statement, BMW described its Oxford plant as “at the heart of Mini production,” with strong demand for its models in the UK and around the world. However, it also acknowledged the industry’s current uncertainties, saying it was reviewing the timeline for bringing battery-electric Mini production back to the plant.
Despite the delay, BMW stressed that much of the planned investment is still moving forward, with the construction “well underway” to make the plant “future-ready.” This includes a new, state-of-the-art logistics facility.
The Department for Transport has responded by saying it recognises the pressures on car manufacturers and is listening to industry concerns. The government is currently consulting on reinstating the original 2030 EV deadline while ensuring job security, a move it claims is backed by most manufacturers on track to meet their ZEV targets.
BMW’s original plan, announced in 2023, was to invest heavily in Oxford to support the production of two new electric Mini models, set to begin in 2026. Whether those plans now move further into the future has not been confirmed as yet.
The government seems to still be committed to EV adoption, with more than £2.3 billion being invested to support both industry and consumers in the transition. However, with big names like BMW and Stellantis raising concerns, there’s still a long way to go before all cars are electrified.
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