Automotive
BMW Invests In Oxford Plant To Make More Electric Minis
(CTN News) – A BBC report indicates that BMW is planning to invest up to £600 million in its Mini plant at Cowley, near Oxford.
The funds will be used to prepare the plant for future electric vehicle production.
BMW has been offered government assistance worth £75 million.
2019 marked the launch of the first generation of electric Minis at the Cowley plant. Original model was based on an existing design that was converted to run with an electric motor and batteries.
As of last year, however, the company announced that the majority of its electric vehicles would be produced in China by a joint venture between BMW and Great Wall Motor.
Leipzig, Germany, would produce one electric model, the Countryman.
BMW suggested that building both conventionally powered vehicles and electric vehicles in the same factory was inefficient at the time.
In addition, it stated that Oxford would continue to be the “home of the Mini” and no jobs would be lost.
As the sale of new, non-hybrid petrol and diesel vehicles is expected to cease in 2030, the factory will eventually have to build electric vehicles again.
A full electric Mini will be available by 2030.
According to BMW, it is in “continuous and productive dialogue” with the UK Government, but refused to comment on future production plans.
BMW’s announcement would be positive at a time when analysts have questioned the future prospects of the British auto industry.
According to the Society of Motor Manufacturers and Traders, UK production fell to its lowest level since 1956 in 2022.
Earlier in the year, Ford closed its engine plant in Bridgend, while Honda closed its factory in Swindon.
Earlier this year, Britishvolt, which was planning to build a battery factory near Blyth, went into administration.
After being bought by Recharge Industries, the company will no longer be focused on electric car batteries.
A small amount of new investment is planned, however.
With a £380 million investment in its Halewood plant, Ford is preparing it to manufacture motors for electric vehicles. Using £100 million of public funding, Stellantis is preparing its Ellesmere Port factory to build electric vans.
The government is also funding the construction of a gigafactory near Nissan’s Sunderland plant, which produces the electric Leaf.
To justify building other electric models here, Nissan has warned that ongoing government support and a reduction in manufacturing costs are needed.
According to Ashwani Gupta, the economics must work.
As conventionally powered cars are phased out, the government is interested in securing a stake in the electric car industry.
As part of the Automotive Transformation Fund, the government is offering BMW £75 million.
A deal is also being negotiated between the government and Jaguar Land Rover’s parent company Tata for a possible gigafactory here.
In addition, Spain is believed to be in the running for the investment as well.
How much do BMW cars cost?
2021 BMW 4 Series Convertible – Starting at $53,100 MSRP. 2021 BMW 5 Series Sedan – Starting at $54,200 MSRP. 2021 BMW 7 Series Sedan – Starting at $86,800 MSRP. 2021 BMW 8 Series Gran Coupe – Starting at $85,000 MSRP.
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