BMW has ceased a £600m investment in the Oxford mini plant owing to slow electric vehicle (EV) sales, casting uncertainty over the facility’s future. On Friday, the German automaker confirmed it is ‘reassessing the schedule for reintroducing battery-electric Mini production in Oxford’ amid challenges affecting the automotive market.
This follows BMW’s detailed response to a government review of the zero-emission vehicle (ZEV) mandate, which imposes substantial fines on carmakers failing to meet specified EV sales targets.
“Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models that are sought after in the UK and around the world. 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,” BMW said.
BMW had scheduled the Oxford factory to exclusively manufacture electric vehicles by 2030. The factory, in operation for over a century and employing 3,100 workers, presently produces combustion engine cars. These vehicles will be banned from sale in the UK by 2030 in line with government plans. Executives from 10 car manufacturers, including BMW, wrote to Chancellor Rachel Reeves, urging ministers to either boost EV subsidies or reconsider the ‘flawed’ sales targets.
Last October, BMW chairman Oliver Zipse voiced serious concerns about the implications of electric vehicle mandates. He cautioned that these requirements could fundamentally damage Europe’s automotive sector, anticipating a major contraction based on current forecasts. Zipse suggested that lowering EV targets would help European car manufacturers reduce their reliance on Chinese battery supplies.
Car manufacturers, including BMW, are grappling with several issues in the European market, such as weak electric vehicle sales, declining overall consumer demand, and mounting competition from more affordable Chinese rivals.
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