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BMW has banned an investment plan of £ 600m to produce mini electric cars in Oxford, placing the future of the historic factory under threat while the industry accumulates with a slower movement than expected from gasoline vehicles.
Investment review comes as a further blow to the UK car industry after the closure of plants by Honda, Ford and JLR over the past decade. In November, Stellantis blamed the targets of UK electric vehicle sales while announcing plans to close its van factory in Luton, endangering about 1100 jobs.
“Given the numerous uncertainties facing the automotive industry, the BMW group is currently reviewing the time to reset the mini electric battery production in Oxford,” the German machine said in a statement.
Car companies have pressured the United Kingdom Government to deduct its EV objectives, which require that a certain percentage of annual sales of each manufacturer be zero -emented vehicles.
The level is set to rise from 28 percent this year to 80 percent in 2030, with companies facing a fine of £ 15,000 for each lost vehicle.
EV sales are growing in the United Kingdom, but remain below official targets, causing car manufacturers such as Nissan to warn that UK jobs may be in danger if the government does not relax its rules of sales EV.
According to his original plan announced in 2023, BMW had intended to produce two new two-door electric-Mini-Mini Cooper models and the smallest mini-aceman in Cowley, providing a lifespan in the factory by reducing its confidence In gasoline cars, which the German group aimed at phase by 2030.
Both models are based on a system developed by the BMW and the large engine of the China wall. The fact that they are currently manufactured in China and sold to the EU means that the models have also been hit by the highest tariffs Brussels set for Chinese EV imports in October.
Last year, the registrations of the new mini cars in the UK dropped 1.3 percent from a year ago to 46,975 vehicles, according to the Association of Producers and Motor Traders. Data from Schmidt Automotive Research showed that 2024 mini electric cars recorded 4.9 percent to 36,932 vehicles in Western Europe, including the United Kingdom.
The government last week ended its rapid consultation with the vehicle industry on how to improve the scheme flexibility to give manufacturers more space for breathing.
“We know the global challenges facing car manufacturers and we have heard their concerns … while also protecting jobs,” the Department of Transport said.
Upon completion of the consultation, Ford UK chief Lisa Branin called for purchasing incentives and other government support, warning that “the approval of electric vehicles is not happening so quickly”. The US group announced 800 UK jobs last year due to slower sales than expected.
