According to BBC News Business Reporter Ben King, BMW has announced a delay in resuming the production of electric vehicles at its Mini plant in Oxford. The decision to pause the £600m upgrade at the Cowley plant was attributed to the “multiple uncertainties facing the automotive industry.” Despite the delay, BMW has opted not to accept a £60m grant from the government but continues to engage in discussions.
The UK automotive industry has been engaged in a ongoing discussion with the government regarding targets for electric vehicle production. Car manufacturers have expressed concerns that the expected volume of electric vehicles to be sold in the coming years is too high. The government recently conducted a rapid consultation on modifications to the zero emission vehicle (ZEV) mandate policy in response to industry feedback.
Last year, Stellantis cited the ZEV mandate as a factor in its decision to shutter its van factory in Luton. BMW, which owns Mini, emphasized the significance of the Oxford plant in manufacturing and exporting sought-after models worldwide. The company is currently reassessing the timeline for reintroducing battery-electric Mini production at Oxford in light of industry uncertainties.
Despite the delay, BMW highlighted that the infrastructure improvements at the plant are progressing, with construction underway to enhance the facility for future production needs. The company emphasized ongoing dialogue with the UK government regarding its plans for the Oxford plant. In 2023, BMW announced a substantial investment to prepare the Mini factory for the production of new electric car models, initially slated for 2026. The Department for Transport acknowledged the challenges faced by car manufacturers and is actively consulting on reinstating the 2030 electric vehicle deadline, while also ensuring job protection. The government agency stated that the majority of manufacturers are in support of this deadline and are on track to meet their ZEV mandate targets, with over £2.3bn being invested to facilitate the transition to electric vehicles
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