Oxford plant tipped to land production of electric Mini

THE future of the sprawling Mini plant in Oxford is looking increasingly assured with parent company BMW leaning towards building the first electric version of the iconic car there.

A decision on where the Mini E will be built is due by the end of September but sources close to the company say the UK plant is almost guaranteed to land the work.

The bulk of the 360,000 Minis produced each year roll off the production line in Cowley. Minis are also built by a contract manufacturer in Born, in the Netherlands. That plant already produces a plug-in hybrid version on the car, and there are fears that the site – or a new one in Regensburg, Germany – could secure Mini E production. A decision to produce the new car in the UK would be a huge vote of confidence in Britain’s automotive industry in the wake of the vote to leave the EU.

Car manufacturers have warned of rising costs in the event of tariffs on imports and exports if a free trade deal cannot be secured, and the prospect of investment being diverted abroad.

About 80pc of the 1.7m cars built in Britain each year are exported, mainly to the EU.

Warning that the sector will “fall off a cliff ” without a deal, Society of Motor Manufacturers and Traders chief executive Mike Hawes used an industry summit last month to tell the Government: “Our sector needs a comprehensive and bespoke trade agreement.”

Oxford’s position as the top choice for the new Mini is strengthened by the fact it already has a production line capable of dealing with large volumes.

Because the Mini E would need only an electric drive train installed, rather than being a completely new design, much of the equipment already in place at Cowley could be used.

A spokesman for BMW said: “No final decision has been made yet.”