German automaker BMW is planning to upgrade its Oxford plant for £500m to ensure the upcoming production of the legendary Mini in Britain, which it has owned since 1994. The company is currently finalizing its investment plans as it aims to announce the final decision later in the spring, as previously reported by Sky News.
Automotive Transformation Fund (ATF)
The Telegraph reported that the £500m investment includes taxpayer funding worth £75m following an agreement with the Department for Business, Energy and Industrial Strategy (BEIS) officials.
BMW now has access to the Government’s Automotive Transformation Fund (ATF), granted to companies aiming to electrify or decarbonize their car production. For context, the £1bn ATF is developed to increase EV battery production, electric motors, drivetrains, or fuel cells.
“Investment through the Automotive Transformation Fund will develop a high-value end-to-end electrified automotive supply chain in the UK, and this includes unlocking private investment in gigafactories.
We’re also working with industry through the Automotive Council’s Skills Working Group to ensure the UK automotive industry can support and develop the skills needed for sustainable success.”
BEIS spokesperson
That said, if a deal is finalized, the project will accelerate the British car industry, which saw weak results in 2022. Britain only reported sales of about 775,000 cars (down 10% YoY) during that period, per the Society of Motor Manufacturers and Traders (SMMT).
BMW may be restarting EV production in UK
It is interesting to note that BMW may be planning to resume EV production in the UK. In hindsight, the automaker announced in 2022 plans to halt electric Mini production in the country, with intentions to relocate to China.
Since then, its Mini plant started producing petrol-powered vehicles, positioning the brand behind car companies racing to electrify their fleets. It must be noted that governments worldwide set a target of banning new sales of petrol and diesel cars from 2030.
“Additionally the Mini Convertible will be returning to Oxford from 2025 – this is one of our most important cars and a global bestseller.”
BMW spokesman
Through its representative, BMW also announced that the commencement of electric Mini production in China was at that time. However, it declined to share other upcoming production, saying they will be announced in “due course.”
“Electric MINIs – a hatchback and small SUV – will start their production in China through our partnership with Great Wall and the electric Countryman will be built in Leipzig [in Germany]. Beyond this we cannot go at this point.”
BMW spokesman
Despite speculations then, the German automaker made it clear that Oxford remains a significant production plant for the Mini brand.
“With its high degree of flexibility, competitiveness, and expertise, the Oxford plant plays an important role in the BMW Group’s production network.
For the next Mini generation, Oxford will produce the majority of Mini models, the Mini Cooper three-door and five-door models, as well as the Mini Convertible — one of our most important vehicles and a worldwide bestseller. Any future production plans will be announced in due course, we do not comment on media speculation.”
BMW spokesman
