BMW Plans $750 Million Investment in UK Facilities for Full Electric Conversion of Mini

BMW Investment to Transform Iconic Mini Brand to Electric by 2030

BMW has announced an investment of 600 million pounds (approximately $750 million) in its UK plants, with the objective of converting its iconic Mini brand to all-electric by 2030. The German carmaker revealed plans to produce two electric models at its Mini plant in Oxford starting from 2026. These models include the Mini Cooper 3-door and the compact crossover Mini Aceman, as the plant is set to exclusively manufacture electric models beginning 2030.

BMW’s Chinese operations will also produce the same models, with exports set to kick off in 2024. The recent announcement has given Britain’s auto industry a much-needed boost following years of Brexit-induced uncertainty.

Government Support and Impact on UK’s Auto Sector

British business minister Kemi Badenoch is slated to visit the Oxford plant for the investment announcement. The government has expressed its support for BMW’s investment, which brings the total investment in the UK’s auto sector in recent years to over 6 billion pounds. However, the carmaker did not provide specific details about the government’s support.

Prime Minister Rishi Sunak stated that BMW’s investment epitomizes how the UK is the ideal location to build future cars. The company will also invest in its UK plant in Swindon, which produces parts for Mini models. However, the company did not disclose plans for its engine plant in Hams Hall.

Uncertainties and Challenges

Since its launch in 1959, the small, fast, and affordable Mini has remained popular under BMW, which revived the brand in 2001. However, the brand’s future in Britain has been uncertain for several years.

The UK and Europe’s car industries are on edge, with both sides calling for a delay in implementing post-Brexit “rules of origin”. Under these rules, 45% of the value of an Electric Vehicle (EV) sold in the European Union must originate from Britain or the EU from 2024 to avoid tariffs. This could potentially pose challenges to the industry’s growth.

Original Story at www.reuters.com – 2023-09-11 09:49:00