The German carmaker plans to reveal the investment in its Cowley plant. It will include a £75m government grant, in several weeks.
BMW, a German automobile manufacturer, is finalizing plans to invest hundreds of millions of pounds in its Oxford facility. Securing the future production of the iconic Mini in the United Kingdom.
According to an industry insider who said, BMW intends to announce its decision later this spring.
If confirmed, the £500 million investment package would boost the British auto sector.
A source said £75 million would come from Chancellor Jeremy Hunt’s Motor Transformation Fund.
It was unclear how the total investment would be structured, as well as the specific implications for employment creation and retention at the company’s Oxford location.
A BMW spokesperson stated that the company does not comment on “media speculation” but added. “With its high level of flexibility, competitiveness, and expertise, the Oxford plant serves an important role in the BMW Group’s production network.”
Oxford will produce the majority of MINI models for the next generation, including the MINI Cooper three-door and five-door models. Also the MINI Convertible, one of our most significant vehicles and a global bestseller.
BMW has previously stated that its all-electric Mini models, a hatchback and a compact crossover, will be manufactured in China as part of a partnership with Great Wall, one of the largest automakers in the country.
The Mini Countryman will begin production in Leipzig, Germany, this year.
If the latest plans work, they’ll boost the UK car business after its worst year since the 1950s.
According to the Society of Motor Manufacturers and Traders, automakers made 775,000 vehicles in 2022, down nearly 10%. (SMMT).
Supply chain issues such as component bottlenecks were a significant factor in the decline, but the gloom enveloping the industry has been deepened by the recent collapse of Britishvolt, the fledgling electric vehicle battery manufacturer.
Recharge Industries, an Australian company, has acquired the technology of Britishvolt.
Production of the Mini at Cowley began in the 1950s and resumed in the early 2000s under BMW’s ownership.
Oxford produces approximately 200,000 Minis annually, with approximately 80% destined for export markets.
The plant employs approximately 4,000 people, making it one of the largest in Britain.
Nissan and Ford both announced new investments in their UK facilities in the past year, with Ford announcing in December that it would spend £150 million at its Halewood facility in Liverpool to expand production of electric vehicle components.
BMW announced in October 2018 that the Oxford facility would produce the Mini Cooper three-door and five-door Hatch models in place of the electric Mini beginning in 2021.
In addition, the Mini Convertible will return to Oxford in 2025. This is one of our most essential vehicles and a global best-seller.
“Electric MINIs, including a hatchback and a compact SUV, will begin production in China through our partnership with Great Wall. And the electric Countryman will be manufactured in Leipzig [in Germany].”
A government spokesperson called the UK “one of the finest locations in the world for car manufacturing” last month.
Investment through the Automotive Transformation Fund will create a high-value, end-to-end electrified automotive supply chain in the United Kingdom, including the release of private capital for gigafactories.
“We are also collaborating with industry through the Automotive Council’s Skills Working Group to ensure that the UK automotive industry can support and develop the necessary skills for long-term success.”
