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BMW to Officially Confirm Plans for Manufacturing Electric Mini in Oxford

Updated: Sep 13, 2023

In an electrifying announcement set to resonate across the automotive landscape, BMW is poised to officially declare its intent to produce the next-generation electric Mini right in the heart of Oxford. However, the saga leading to this pivotal decision is one marked by intricate negotiations and government-backed financial intrigue.

Amidst whispers of relocating production to China, the German automotive titan BMW found itself entangled in negotiations with the UK government, a high-stakes tango to ensure the continued residence of the mini output within the Oxford plant's hallowed halls. Today, as the sun rises on this occasion, the veil of uncertainty is lifted, and the government's investment of a reported £75 million takes center stage.

This financial backing from the government represents a strategic move, a noteworthy entry in a growing ledger of agreements between the public sector and automotive titans, all geared towards facilitating the costly transformation of factories into eco-friendly bastions of zero-emission vehicle creation.

The symbiotic alliance forged with BMW is poised to be a catalyst, unlocking an impressive £600 million investment from the automotive juggernaut. Moreover, the bulwark protects approximately 4,000 jobs within the confines of the UK's second-largest automotive manufacturing facility.

Prime Minister Rishi Sunak hailed the investment as "another shining example of how the UK is the best place to build cars of the future".

"By backing our car manufacturing industry, we are securing thousands of jobs and growing our economy right across the country," he added.

His comments were echoed by Business and Trade Secretary Kemi Badenoch, who told Sky News: "At a time when people are concerned about what the future is going to be like for the auto industry, what we're saying is that we're doing a lot and it is working."

This announcement arrives as a crescendo in a symphony of achievements for the UK's burgeoning electric vehicle (EV) sector. Months of exponential sales growth set the stage for this transformative moment. Last week, the Stellantis factory in Ellesmere Port commenced its EV production journey, thanks to a substantial £100 million investment. Meanwhile, Chancellor Jeremy Hunt inaugurated the nation's largest EV charging hub at the NEC in Birmingham.

These milestones follow hot on the heels of an agreement reached earlier this summer between the UK government and the Indian conglomerate Tata. This groundbreaking pact provides hundreds of millions of pounds in taxpayer financial backing, paving the way for a staggering £4 billion investment in the country's inaugural EV battery gigafactory.

Interwoven with strategic government investments in charging infrastructure and groundbreaking R&D endeavors, these funding agreements have garnered industry-wide applause. Nevertheless, a cautionary note lingers in the air. Industry leaders persistently caution that without a substantial uptick in investment directed towards charging infrastructure and supply chains, the industry may fail to meet the government's ambitious goal of discontinuing the sale of new internal combustion engine vehicles by 2030.

The Society of Motor Manufacturers and Traders (SMMT) serves as a persistent voice in the discourse, urging Ministers to promptly clarify the intricate details of the forthcoming Zero Emission Vehicle (ZEV) mandate. With its impending implementation, manufacturers face a daunting task ahead, and clarity is the key to navigating this new terrain effectively.


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