BMW has announced a review of its planned £600 million investment in electric Mini production at its Oxford plant, citing stalling demand for electric vehicles.
The German carmaker's decision marks a significant setback for the facility, which was set to manufacture battery-electric Mini Cooper and Mini Aceman models from 2026.
The investment plan, announced in 2023, included £60 million in taxpayer subsidies under Rishi Sunak's government.
The deal represented a significant reversal for BMW, which had previously shifted electric Mini production to cheaper facilities in China.
BMW has announced a review of its planned £600 million investment in electric Mini production at its Oxford plant
PA
The Oxford site was scheduled to begin manufacturing electric Mini Cooper and Aceman crossover SUV models by 2026.
Plant Oxford, which employs 4,500 workers and has a history spanning more than a century, will continue manufacturing Minis with internal combustion engines.
However, the plant's long-term future has been cast into doubt, as it was originally scheduled to become an electric-only facility by 2030.
UK carmakers must meet strict electric vehicle sales quotas or face penalties of £15,000 per car, with 28% of sales required to be EVs this year, up from 22% in 2024.
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The Oxford site was scheduled to begin manufacturing electric Mini Cooper and Aceman crossover SUV models by 2026
PA
Meeting last year's quota reportedly cost UK carmakers £4 billion in consumer discounts, as buyers grapple with high EV costs and charging infrastructure concerns.
BMW insists that Plant Oxford remains "at the heart of Mini production" for cars exported globally.
"However, given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford," the company stated.
Earlier this month, the company announced strike action involving more than 600 workers at BMW's Birmingham Hams Hall engine plant.
Plant Oxford employs 4,500 workers
PA
The industrial action, announced by the Unite union, will involve nearly 90 per cent of the factory's workforce as the manufacturer said it was "disappointed" that the strikes were going ahead.
The strikes come after almost a year of failed negotiations over the 2024 pay increase with BMW, which has been marked by withdrawn offers and contentious discussions.
Workers are particularly frustrated after accepting below-inflation pay rises in 2022 and 2023 to support the company during the cost-of-living crisis.
The latest offers from BMW amount to half of what workers at the company's Oxford site have received for 2024.
