BMW Halts 600 Million Pound Mini Electric Vehicle Investment at Historic Oxford Plant

In a significant blow to Britain’s automotive sector, BMW has announced the suspension of its £600 million investment in the historic Mini manufacturing facility at Cowley, Oxford. The German automotive giant cited declining electric vehicle (EV) demand as the primary reason for this strategic pivot.

The investment, which included £60 million in British taxpayer subsidies, was originally secured by Rishi Sunak’s government in 2023. The plan encompassed the production of the electric Mini Cooper and Mini Aceman crossover SUV, scheduled to commence next year at the facility, which has been operational since 1913.

Government sources have challenged BMW’s official stance, suggesting the decision stems from the impact of EU tariffs on the company’s Chinese-manufactured vehicles rather than stalling EV demand. The European Union imposed a 20.7% tariff on Chinese EVs last October, significantly affecting BMW’s operations.

The timing of this decision is particularly concerning as it coincides with broader industry challenges. The UK’s zero emissions vehicle mandate requires 28% of sales to be EVs this year, an increase from 22% in 2024. Manufacturers faced substantial costs last year, spending £4.5 billion on customer incentives to meet these targets rather than paying the £15,000-per-vehicle penalty.

Plant Oxford, which has produced over 5.2 million Minis since 1959, stands as a symbol of British manufacturing excellence. The facility’s transition to all-electric production by 2030 now appears uncertain, with sources indicating the possibility of continued petrol-powered Mini production beyond this date to serve markets without internal combustion engine restrictions.

This development follows recent industry setbacks, including Jaguar Land Rover’s warnings about UK investment levels and Vauxhall’s announcement of 1,100 job losses at its Luton facility. These events collectively signal growing tensions between automotive manufacturers and the UK’s ambitious EV transition timeline.