BMW delays £600m electric Mini factory upgrade over 'uncertainty'

BMW recently announced that it would postpone the resumption of electric vehicle production at its Mini plant in Oxford, UK. This decision has sparked widespread attention in the industry and highlights the multiple uncertainties currently facing the automotive sector.

BMW stated that, given the numerous uncertainties facing the automotive industry, the company has decided to suspend the £600 million upgrade project at the Cowley plant. Simultaneously, the company has also decided not to accept the £60 million in related subsidies offered by the UK government, but will continue to maintain close communication with the government.

There has been a long-standing dispute between the UK automotive industry and the government regarding electric vehicle production targets. Automakers generally believe that the government's electric vehicle sales targets for the coming years are too high and difficult to achieve. Previously, the government conducted a rapid consultation on the revision of the Zero Emission Vehicle (ZEV) mandate policy.

Mini owner BMW said in a statement: "The Oxford plant is at the heart of Mini production, responsible for manufacturing and exporting a range of models that are popular in the UK and around the world." The statement also emphasized that most of the investment is still underway, including the construction of a new "state-of-the-art logistics facility," which is progressing smoothly and aims to prepare the plant for the future.

The UK Department for Transport (DfT) stated that it understands the challenges currently facing automakers and is listening to their concerns. The Department is consulting on "resetting the 2030 electric vehicle deadline while protecting jobs," and stated that this decision is supported by most manufacturers, who have been working towards this date and are expected to meet their ZEV mandate targets. The Department added that the government is investing over £2.3 billion to support the industry and consumers in the transition to electric vehicles.