BMW Halts £600 Million Electric Mini Investment Amid Industry Uncertainty

[Social Media]

 

BMW has put a hold on its planned £600 million investment in the UK for electric Mini production, citing uncertainty in the automotive industry. The decision comes despite the company's previous commitment to making the Mini brand fully electric by 2030, with production initially scheduled to begin in Oxford by 2026.

 

The German automaker revealed that due to "multiple uncertainties facing the automotive industry," it is reevaluating its strategy, with the next generation of Mini vehicles currently being manufactured in China. While construction in Oxford was underway to prepare the plant for the transition to electric vehicle production, BMW has informed the UK government that it is reassessing its timeline. Alongside this, the company has declined a £60 million grant offered by ministers to support the project.

 

A spokesperson for BMW stated, "Given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford. As part of this discussion, we agreed not to take the previously announced grant, but we remain in close dialogue about our future plans."

 

Originally, the transition to electric vehicle production at the Cowley plant was expected to safeguard jobs in Oxford and at a body-pressing facility in Swindon. However, the decision to delay has raised concerns about potential job losses and reduced economic investment in the UK. In the meantime, electric Minis are being produced at a factory in Zhangjiagang, China.

 

This development follows similar concerns in the UK automotive sector, including the recent closure of Vauxhall’s van plant in Luton. Stellantis, the parent company of Vauxhall, attributed the closure to Labour’s electric vehicle mandate, which has put approximately 1,100 jobs at risk.

 

The UK’s zero emissions vehicle (ZEV) mandate requires car manufacturers to ensure that a set percentage of their sales come from electric vehicles each year or face financial penalties. For 2024, 28 percent of all new cars sold in the UK must be zero-emission vehicles. However, the policy has faced criticism from the automotive industry, with many arguing that the expectations are too high and that the government is not doing enough to support manufacturers or encourage consumers to transition away from petrol and diesel vehicles.

 

Industry leaders and experts have urged the government to offer stronger incentives, including tax breaks, to accelerate the shift toward electric vehicles. Academics point to the stagnating demand for EVs, attributing it to high upfront costs compared to traditional petrol and diesel cars, as well as concerns about battery life and charging infrastructure.

 

Dr. Jonathan Owens, a senior lecturer at the University of Salford’s business school, previously told MailOnline that the mandate has become "more of a hindrance than a help." Meanwhile, car manufacturers face increasing competition from Chinese brands such as BYD and the now Chinese-owned MG, which produce affordable electric vehicles on a massive scale. The influx of low-cost Chinese imports has further complicated the landscape for British manufacturers, placing jobs and investment in jeopardy.

 

Based on a report by Daily Mail  2025-02-24

 

 

[DonniePeverley]

Ridiculous muddled policy. 

 

Have to stop this madness now.

 

I'm all for EV car's and low emissions (they are desperately needed in Bangkok), but the whole net zero mantra is ultra nonsense. 

[thaibeachlovers]

2 hours ago, Social Media said:

However, the policy has faced criticism from the automotive industry, with many arguing that the expectations are too high and that the government is not doing enough to support manufacturers or encourage consumers to transition away from petrol and diesel vehicles.

LOL, LOL, LOL. Seems the best laid plans of mice and the wokeistas are coming to naught as people finally wake up to the farce that is being imposed on them from the elites.

Anyway, it's IMO a complete waste of time and treasure, as hydrogen power is waiting to be the REAL non polluting alternative. Once they develop a reliable and cheap method of producing hydrogen it's game over for battery cars.

 

If I were an investor, in the short term I'd be betting on hybrids with large petrol tanks.

[JonnyF]

EV's are so great and so popular that the government has to force them on people. 😄

 

Let the market decide. 

 

Policies like the one below just kill investment. As they are finding out...

 

5 hours ago, Social Media said:

The UK’s zero emissions vehicle (ZEV) mandate requires car manufacturers to ensure that a set percentage of their sales come from electric vehicles each year or face financial penalties. For 2024, 28 percent of all new cars sold in the UK must be zero-emission vehicles.