ELECTRIC MINI BUILT IN UK
Huge boost for Brexit Britain as BMW defies Remoaners with car plant pledge on day of economic good news
BMW delivered a vote of confidence in post-Brexit Britain yesterday as it pledged to build the electric Mini here.
Having previously warned it could move production to the Netherlands, the German car giant revealed the next generation of the car will be assembled at its historic home in Cowley, Oxford.
The first fully electric Mini E will roll off the production line in 2019, just as Britain cuts ties with the EU.
The electric drivetrain – the components that transfer power from the transmission to the wheels - will be built in Germany, before being shipped to the UK.
Bosses at BMW had told shareholders that the electric Mini could be manufactured at its smaller plant in the Netherlands, as they ratcheted up pressure on ministers to thrash out a favourable deal for the car industry in Brexit negotiations.
There had also been mounting speculation that the firm would build a plant in Germany.
But yesterday BMW became the latest international carmaker to back Britain, with Nissan, Jaguar Land Rover and Toyota all revealing plans to ramp up production and invest in their UK car plants.
It also became the latest manufacturer to outline plans to boost production of electric cars. BMW said it would be able to offer a fully electric version of any new model of BMW or Mini launched from 2020, if there was enough demand.
Tory MPs last night described the firm’s decision as a ‘clear endorsement’ of British car manufacturing, its workforce and its long term economic prospects.
It is also a boost to the 4,500 workers who churn out around 1,000 Minis a day at the 100-acre plant. BMW employs 24,000 staff in the UK, from the factory floor to its dealerships, including the Rolls-Royce factory in Sussex, and other plants in Birmingham and Swindon.
Business secretary Greg Clark, who is said to have met BMW board member Ian Robertson four times this year, said: ‘This landmark decision is a vote of confidence in the determination of our industrial strategy to make Britain the go-to place in
‘An attractive place to invest’
the world for the next generation of vehicles.
‘BMW’s decision recognises the strength of the excellent workforce, our record of innovation and the productive relationship between the automotive sector and the Government. The automotive industry is a great British success story and the Mini is a big part of that.’
BMW’s move comes after a string of dire warnings from the car industry about the damage from Brexit.
The motor trade body the SMMT has described leaving the EU without a free trade deal as the biggest ‘threat to the car industry for a generation’, amid fears that hefty tariffs will be imposed. Car makers have warned that the prospect of tariffs could push up the cost of manufacturing, forcing them to increase their prices.
With 80 per cent of the 1.7million cars built in the UK exported – mainly to the EU – some are worried that plants in the UK will no longer be able to compete.
Last night pro-Brexit MPs and City experts said common sense
had prevailed. Sir Bill Cash, Tory MP for Stone, said: ‘The doomsayers and the prophets of fear are being given a lesson in practical common sense. This is an extremely important endorsement of the British workforce, and British car making.’
Charlie Elphicke, Conservative MP for Dover and Deal and a supporter of the Change Britain campaign group, said: ‘The fact that this iconic car will be built in Britain is a huge vote of confidence in the UK economy and great news for British jobs.
‘This is yet further evidence that Britain remains an attractive place to invest, with companies looking to develop the technologies of tomorrow here in the UK today.’
David Buik, a veteran City commentator who works for stockbroker Panmure Gordon, said: ‘We’re the second largest car assembly country in Europe for good reason. There is absolutely no need to move production elsewhere as we have the innovation, skills, driver and zest to take on all comers.’
BMW said that it was committed to selling 100,000 electrified vehicles – hybrids or electric cars – this year, as many as it has sold in total since production started four years ago.