BMW to Invest £600 Million in UK Factory for Mini Electric Cars
Introduction
BMW has announced a major investment of over £600 million in its Oxford factory to produce Mini electric cars. The move aims to preserve the historic factory and provide a vote of confidence to the UK car industry. The investment is expected to be supported by around £75 million of public funds.
A Boost for the UK Car Industry
The investment by BMW comes as a much-needed boost for the UK car industry, which has faced challenges due to the COVID-19 pandemic and the shift towards electric vehicles. Production has fallen 40% since the start of the pandemic, with factory closures and global parts shortages affecting the industry. However, there has been an increase in production of electric vehicles due to growing demand.
BMW’s Commitment to Electric Vehicles
The investment in the Oxford factory highlights BMW’s commitment to electric vehicles and the transition away from traditional combustion engines. The German carmaker plans to manufacture two new electric models, the 3-door Mini Cooper and the new, smaller Mini Aceman, in Oxford. This move will pave the way for the production of purely electric cars in the future.
Partnership with Great Wall Engine
Both electric models will be based on a system developed by BMW and the Chinese company Great Wall Engine. The vehicles will be produced in China in a new jointly-owned factory from next year. Despite the partnership with Great Wall Engine, BMW has stated that it has no plans to manufacture Great Wall Engine’s cars in the British factory in the future.
The Role of the UK Government
The UK government has played a role in supporting BMW’s investment at the Cowley site. Around £75 million of public funds will be provided to support the project. This highlights the government’s commitment to boosting investment in battery technology and attracting new manufacturers to the UK, such as Tesla.
Future of the UK Car Industry
The investment by BMW in its Oxford factory and the production of electric Mini cars is a significant step towards the future of the UK car industry. It demonstrates the country’s potential and competitiveness in the electric vehicle market. However, there are still challenges ahead, including the need to diversify the supply chain and meet net-zero targets for carbon neutrality.
Conclusion
The investment by BMW in its Oxford factory for the production of Mini electric cars is a positive development for the UK car industry. It not only preserves the historic factory but also provides a vote of confidence in the industry’s future. The partnership with Great Wall Engine and the commitment to electric vehicles demonstrate BMW’s dedication to the transition away from traditional combustion engines. With government support and a focus on battery technology, the UK has the potential to become a leader in the electric vehicle market.
**Summary:**
BMW has announced a major investment of over £600 million in its Oxford factory to produce Mini electric cars. This move aims to preserve the historic factory and provide a vote of confidence to the UK car industry. The investment will be supported by around £75 million of public funds. BMW’s decision comes at a crucial time for the UK car industry, which has faced challenges due to the COVID-19 pandemic and the shift towards electric vehicles. Production has fallen 40% since the start of the pandemic, with factory closures and parts shortages impacting the industry. However, there has been an increase in production of electric vehicles to meet growing demand.
With this investment, BMW aims to strengthen its commitment to electric vehicles and the transition away from traditional combustion engines. The company plans to manufacture two new electric models, the 3-door Mini Cooper and the new, smaller Mini Aceman, at its Oxford factory. This move will pave the way for the production of purely electric cars in the future. The electric models will be based on a system developed by BMW and Chinese company Great Wall Engine. Production will take place at a new jointly-owned factory in China from next year.
The UK government has played a role in supporting BMW’s investment at the Cowley site. Public funds amounting to around £75 million will be provided to support the project. This highlights the government’s commitment to boosting investment in battery technology and attracting new manufacturers, including Tesla, to the UK. Despite challenges, such as diversifying the supply chain and meeting net-zero targets, the investment by BMW demonstrates the country’s potential and competitiveness in the electric vehicle market.
Overall, BMW’s investment in its Oxford factory for the production of Mini electric cars is a positive development for the UK car industry. It not only preserves the historic factory but also provides a vote of confidence in the industry’s future. The partnership with Great Wall Engine and the commitment to electric vehicles demonstrate BMW’s dedication to the transition away from traditional combustion engines. With government support and a focus on battery technology, the UK has the potential to become a leader in the electric vehicle market.
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BMW will invest more than £600 million to produce Mini electric cars in Oxford, preserving the historic factory and providing a vote of confidence to the UK car industry.
The German carmaker’s investment at the Cowley site will be supported by around £75m of public funds, according to people familiar with the matter. However, production of two new models will begin in 2026. BMW plans to import batteries for cars from Europe or China.
The plant’s future has been under threat since BMW announced last year that it would cease production of the first electric Mini model, leaving the plant dependent on gasoline cars, which the German group has promised to phase out. by 2030.
As part of the plan, BMW will manufacture two new electric models, the 3-door Mini Cooper and the new, smaller Mini Aceman, in Oxford.
“With this new investment, we will develop the Oxford plant for the production of the new generation of electric Minis and pave the way for the manufacturing of purely electric cars in the future,” said Milan Nedeljković, Head of Production at BMW.
Both models are based on a system developed by BMW and the Chinese Great Wall Engine, and will be produced in China in a new jointly owned factory from next year. Despite using Great Wall technology, BMW had “no plans” to manufacture the Chinese brand’s cars in the British factory in the future, Nedeljković said.
Prime Minister Rishi Sunak hailed BMW’s decision as “another shining example of how the UK is the best place to build the cars of the future”.
BMW’s decision is a much-needed boost for the UK car industry. Production has fallen 40% since the start of the coronavirus pandemic, following factory closures, global parts shortages and decisions by some manufacturers to move their models overseas, although production electricity has increased due to growing demand.
The government has set aside £1 billion to try to boost investment in battery technology and attract new manufacturers such as Tesla. Despite recent investment from Jaguar Land Rover and its owner Tata Motors, as well as Nissan, Stellantis and now BMW, none of the major new entrants have decided to build in the UK.
Chinese company BYD said this year that Brexit meant the UK was not even in the top 10 locations considered for a European factory.
The new investment will also allay fears about the strategic importance of Cowley to BMW. In addition to manufacturing the same electric Mini models in China with Great Wall, BMW will manufacture the Mini Countryman, its high version, in Leipzig, Germany.
“Oxford is and remains the heart of the brand,” said Mini director Stefanie Wurst.
Nedeljković said the Oxford factory would continue to export worldwide, although the Chinese factory which will also build electric Minis would benefit from lower manufacturing costs.
Business Secretary Kemi Badenoch said the car industry was “a very critical industry for the UK economy and faces many headwinds”.
She said it was “pointless” to have net zero targets if they were impossible to achieve, and said the government would remain “flexible” about its targets.
“At the moment China is at the forefront of this technology, we wouldn’t be able to get to the net zero level we want by stopping or banning Chinese products, that’s certainly not where we’re at are,” she said.
“We are ensuring that we can deliver on the carbon neutrality commitments we have made, but we are also looking to diversify our supply chain as much as possible.”
Ministers are finalizing plans for a China-style electric vehicle sales quota system, which will come into force in January. The industry has called for the rules, which are expected to require 22 percent of car sales to be zero-emissions next year, an increase every year this decade, to be delayed.
Badenoch said the government was aware the transition would not be easy. “What we’re working on is how we can be as flexible as possible to make it easier for people to adapt. »
As well as the Oxford plant, BMW also has an engine plant in Hams Hall, a metalworks plant in Swindon and the luxury car brand Rolls-Royce.
BMW’s move comes as British car factories seek investment to build electric models, as the industry moves away from traditional combustion engines.
Last week, Vauxhall owner Stellantis began producing electric vans at Ellesmere Port, following an investment of around £100m which saved the site from closure.
JLR is investing around £15bn in new electric models to be built in the UK, while parent group Tata this summer announced a £4bn investment in a new battery factory, which will use in a first time Chinese technology, to support JLR’s electric models.
Nissan, which runs the UK’s largest car factory, has invested around £1bn with battery partner AESC, which is owned by China’s Envision. The Japanese group has committed to producing at least one new electric model in Sunderland. The Financial Times reported earlier this year that the company was also exploring future designs for the site.
Additional reporting by Jim Pickard
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