BMW chooses UK plant for new electric Mini
london — BMW AG will build an electric version of the Mini compact car at its factory in Oxford, England, choosing the UK site over alternatives in Germany and the Netherlands despite risks associated with Brexit.
Production of the battery-powered Mini will start in 2019, BMW said on Tuesday in a statement. The plant will make the car until at least 2023, a person familiar with the decision said.
With the move, BMW joins tech companies in investing in Britain ahead of the country’s departure from the European Union, even as investment banks relocate some operations. Amazon.com Inc is expanding its new UK headquarters to support the growth of its Prime Video service in Europe. The world’s largest online retailer will occupy all 15 floors of a newly constructed tower on the edge of the City of London, after initially planning to take only 11.
BMW’s “landmark decision is a vote of confidence in the determination of our industrial strategy to make Britain the go-to place in the world for the next generation of vehicles,” UK Business Secretary Greg Clark said in a statement. “The automotive industry is a great British success story,” and “we want to see the sector continue to innovate and grow here.” Selecting the production site for the e-Mini has been particularly complex because of competing political and economic pressures amid government negotiations over Brexit. If a trade agreement proves unfavorable, components from Germany could face tariffs, making the project less viable. Assigning the model to Mini’s main plant would ease tensions with UK officials, who have been lobbying heavily for the marquee project.
The new vehicle will be based on the underpinnings of Mini’s core 3-door model, with drivetrain components coming from BMW plants in Dingolfing and Landshut, Germany, the carmaker said.
The relatively short time frame for the production run for the model — four years, compared to the typical seven — gives BMW the opportunity to shift the car elsewhere with the next revamp of the vehicle if necessary, said the person familiar with the decision, who asked not to be identified because the information isn’t public.
The battery-powered Mini variant marks a critical expansion of the Munich-based manufacturer’s electric-car lineup as it prepares for tougher EU environmental rules being phased in starting in 2020. The e-Mini will be BMW’s first all-electric model since the namesake brand’s i3 was introduced in 2013.