Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

BMW revs up £500m plan to secure Mini production in Britain

BMW revs up £500m plan to secure Mini production in Britain

The German car giant hopes to announce the investment in its plant at Cowley – which will include a £75m government grant – in several weeks’ time.

BMW, the German car manufacturer, is applying the finishing touches to plans to invest hundreds of millions of pounds into its Oxford plant, securing future production of the iconic Mini in Britain.

Sky News has learnt that BMW hopes to announce its decision later in the spring, with one industry insider saying on Wednesday that it was expected to be unveiled in several weeks' time.

If confirmed, the investment package - which is thought to be worth close to £500m - would deliver a major boost to Britain's car industry.

One source confirmed that roughly £75m of the funding would be from the government's Automotive Transformation Fund, having been signed off by the chancellor, Jeremy Hunt.

Sky News reported the discussions between BMW and the government last month.

It was unclear exactly how the total investment would be structured, or the specific implications for job creation and retention at the company's Oxford site.

Responding to an enquiry from Sky News, a BMW spokesperson said the company did not comment on "media speculation", but added: "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."

BMW has said previously that its all-electric Mini models - a hatchback and a small crossover - are to be produced in China as part of a partnership with Great Wall, one of the country's biggest carmakers.

The MINI Electric is to be produced outside of the UK


From this year, the Mini Countryman will be built in Leipzig, Germany.

Assuming the latest plans bear fruit, they will represent a fillip to the UK car industry weeks after it emerged that the sector had had its worst year in production terms since the 1950s.

In 2022, carmakers produced just 775,000 vehicles, a slump of nearly 10%, according to the Society of Motor Manufacturers and Traders (SMMT).

Supply chain issues such as component bottlenecks were a major factor in the decline, but the gloom enveloping the industry has been deepened by the recent collapse of Britishvolt, the fledgling electric vehicle battery manufacturer.

Britishvolt's technology has been acquired by Recharge Industries, an Australian company.

Production of the Mini at Cowley dates back to the 1950s, and resumed under BMW's ownership in the early 2000s.

Roughly 200,000 Minis are built at Oxford each year, with about 80% destined for export markets.

The plant employs about 4,000 people, making it easily one of the most significant in Britain.

Nissan and Ford have both announced new investments in their UK facilities in the last year, with the latter saying in December that it would spend £150m at its Halewood plant in Liverpool to expand production of electric vehicle parts.

BMW announced in 2021 that it would cease making the electric Mini in Oxford, adding last October that the UK plant would instead build the Mini Cooper three-door and five-door Hatch models.

"Additionally the Mini Convertible will be returning to Oxford from 2025 - this is one of our most important cars and a global best-seller," it said at the time.

"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]."

A government spokesperson said last month that the UK was "one of the best locations in the world for automotive manufacturing.

"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."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×