Electric Mini to be built in UK
BRITAIN’S car industry has been given what the Government called a “vote of confidence” by BMW, with the German automotive giant announcing it will build an all-electric version of the Mini in the UK.
BMW said, from 2019, a fully electric “Mini E” will roll off the production line at the Oxford plant, which is the historic home of the iconic car, easing concerns about the impact of Brexit.
The news guarantees the future of 4,500 staff at the plant, which currently build the bulk of the 360,000 Minis of all models produced annually.
There had been speculation the work could go to BMW’S factory in the Netherlands, which currently produces a smaller amount of the fleet, or even an entirely new base in Germany.
However, industry sources say there was little doubt BMW would ever pick anywhere but Oxford, having sunk £500m into the plant over the past five years, and changes required for the electric car would require just a fraction of that investment.
The decision to build the Mini E in the UK was made by the BMW’S main board, with a spokesman describing it as a “multi-faceted decision involving many factors, including the large scale Mini production at Oxford”.
“The business case for Oxford is the best one on offer given current economic and trading conditions. We can’t speculate about what Brexit will mean,” he said. Dire warnings have been issued by car makers and their suppliers that Brexit could drive away investment from the UK.
The prospect of trade tariffs once Britain leaves the EU could push up the costs of manufacturing, and with 80pc of the 1.7m cars built in the UK being exported, mainly to the EU, the industry feared that sites here would no longer be able to compete on a global scale.
Through sector trade body the Society of Motor Manufacturers and Traders, car makers have been demanding government action to protect the industry, calling for a transition deal rather than a “hard Brexit” and the imposition of tariffs once the Article 50 deadline is hit in 2019.
Ian Robertson, a BMW board member and the most senior Briton in the company, has met with Greg Clark, the Business Secretary, four times so far this year, in meetings where the Mini E is thought to have been central to discussions.
Mr Clark said BMW’S backing of the Cowley Road site with the Mini E was a “landmark decision” and “vote of confidence … to make Britain the go-to place in the world for the next generation of vehicles.
However, sources close to BMW said the company was “absolutely” behind the industry campaign for Britain to agree a transition deal.
Prof David Bailey, a car industry
expert at Aston University, said: “It was highly unlikely BMW would go elsewhere as an electric Mini does not need a separate production line. The real question is where BMW – and other manufacturers – choose to go with completely new models once we leave the EU.” Prof Bailey added it is “open season on the Government for the car industry”, with manufacturers putting huge pressure on ministers for support.
Examples of government backing the sector include Monday’s news of funding for research into electrification of cars, he said.
A source with knowledge of BMW’S thinking added: “The Oxford decision has no impact on future investment decisions, which will be taken according to EU and trading conditions at the time – this is just the next step in BMW’S electrification strategy.”
BMW’S facility in Oxford, is the main site for three-door Mini hatchback and will be used to install electric drivetrains built at the company’s two main “e-mobility” centres in Bavaria at Dingolfing and Landshut. Batteries for these will come from Korea’s Samsung.