The German automaker is in negotiations with the Automotive Transformation Fund over a £75 million grant that would guarantee the production of electric Minis at Cowley.
BMW is discussing a £75 million government subsidy package to safeguard electric Mini production at its Oxfordshire plant.
BMW is in negotiations with Department for Business, Energy, and Industrial Strategy (BEIS) officials over an Automotive Transformation Fund grant.
According to industry sources, a deal between the government and the company could be finalized within weeks.
One source said business secretary Grant Shapps and chancellor Jeremy Hunt supported the £75 million proposal.
BMW negotiating £75m UK government grant for electrified Mini
On Saturday, it was unclear when the funds would be released and when the plant would begin utilizing them.
If a deal is reached, it would provide a boost to the British automobile industry just weeks after it was revealed that the sector had its worst production year since the 1950s.
The Society of Motor Manufacturers and Traders said that manufacturers produced 775,000 automobiles in 2022, down roughly 10%. (SMMT).
Supply chain issues such as component bottlenecks were a major factor in the decline. But the recent demise of Britishvolt, a fledgling electric vehicle battery manufacturer, has exacerbated the industry’s gloom.
The Financial Times reported on Friday that Australian company Recharge Industries has been selected as Britishvolt’s preferred bidder.
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 to expand production of electric vehicle components at its Halewood plant in Liverpool.
BMW announced in October 2018 that the Oxford plant would produce the three-door and five-door hatchback versions of the Mini Cooper in place of the electric Mini in 2021, as previously announced.
In addition, the Mini Convertible will return to Oxford in 2025. This is one of our most important vehicles and a global best-seller.
Electric MINIs, a hatchback, and a small SUV will begin manufacturing in China via our relationship with Great Wall. While the electric Countryman will be manufactured in Leipzig [Germany].
Beyond this point, we cannot proceed.
Plans for future production will be communicated in due time.
Oxford, with its high level of flexibility, competitiveness, and competence, plays an essential part in the BMW Group’s manufacturing strategy and will continue to be the epicenter of Mini manufacture.
This weekend, a BMW spokesperson declined to comment on its funding negotiations with the government.
The United Kingdom is one of the top sites in the world for automobile production, according to a BEIS representative.
“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.
The administration did not directly comment on the negotiations with BMW.
