BMW announces pause to Oxford Mini factory upgrade
BMW has said low electric vehicle sales are behind its decision to delay a £600m upgrade of its Oxford Mini factory.
The news comes just weeks after Stellantis confirmed it was closing its Vauxhall factory in Luton due to lower than expected EV sales.
BMW Group announced in 2023 it would invest £600m to upgrade the site for electric vehicle production. The government-backed investment was expected to secure upwards of 4,000 jobs.
However, with EV sales across Europe falling by 5.9% last year, it has now rowed back on plans.
Oxford Mini factory investment
A statement said: “Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which are sought after in the UK and around the world. However, given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.
“We have informed the UK government of our 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.”
The site was expected to manufacture the electric Mini hatch and new Aceman crossover from next year.
A Department for Transport spokesperson said: “We recognise the global challenges car manufacturers face and have listened to their concerns by consulting on reinstating the 2030 EV deadline whilst also protecting jobs – a decision supported by a majority of manufacturers who have been working towards this date, and are on track to meet their ZEV mandate targets.”
