LONDON: German carmaker BMW AG is reviewing plans to reintroduce battery-electric Mini production in the United Kingdom, due to uncertainties facing the automotive industry.
The decision represents a U-turn for the group, which in 2023 announced it was investing £600mil (US$758mil) including in the Oxford plant where the Mini brand originated to make electric models, backed by a grant from the United Kingdom government to prop up the country’s car industry.
The carmaker was planning to start production of electric vehicles (EVs) by 2026 and shift the plant to all-EV production from 2030 onward – a timeline that’s now called into question by the latest announcement.
“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 manufacturer said in a statement.
The announcement will come as a blow to Britain’s Labour government, which has made efforts to attract investment to boost the country’s flagging economy.
Business and consumer sentiment took a hit last year after a series of dire government warnings about the country’s prospects and big tax rises on employers in the October budget, which Labour said are necessary to fund public services.
BMW had previously shifted its electric Mini output to China, a setback to the Britain as it was trying to transition its already diminished auto industry to battery-powered models.
Britain’s car industry has been in decline for years, with Brexit and high energy costs adding to its challenges.
The country wants to be a leader in EVs but has lagged other countries in establishing the necessary plants and battery factories.
BMW Group informed the United Kingdom government of its decision to “review the timeline” for reintroducing battery-electric production in Oxford.
“As part of this discussion, we agreed not to take the previously announced grant, but we remain in close dialogue about our future plans,” a spokesperson for the firm said. — Bloomberg
