Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

BMW to invest $750 million in UK plants to take Mini fully electric

by Staff GBAF Publications Ltd
0 comment

BMW to invest $750 million in UK plants to take Mini fully electric

By Nick Carey

LONDON (Reuters) -BMW said on Monday it will invest 600 million pounds ($750 million) in its UK plants to take its Mini brand all-electric by 2030, giving a fresh boost to Britain’s car industry after years of Brexit-related uncertainty.

From 2026, the German premium carmaker will make two electric models at its Mini plant in Oxford – the Mini Cooper 3-door and the compact crossover Mini Aceman.

The plant will make only electric models as of 2030 and many of those cars will be exported to markets around the world, BMW production chief Milan Nedeljkovic said.

Speaking to journalists in Oxford, Nedeljkovic said the company wants to use batteries made in Europe in the new models made in Oxford, but did not specify whether they would come from the UK, saying it depending on the attractiveness of the market for its suppliers.

The same two models will also be made in China and exports of those cars will begin in 2024.

Also speaking in Oxford, British business minister Kemi Badenoch said: “We want auto manufacturing not just to stay in the UK, but to be the best in the world, and this is part of that story”.

Badenoch declined to comment on the level of subsidy to be received by BMW for Mini production, reported by British media to be 75 million pounds.

BMW will also invest in its plant in Swindon which makes parts for Mini models. It was too soon to say what would happen to the engine plant in Hams Hall, near Birmingham, Nedeljkovic said.

The small, fast and affordable original Mini went on sale in 1959 and has remained popular under BMW since it revived the brand in 2001, but its future in Britain has been uncertain for years, exacerbated by fears that Brexit would prompt the company to relocate production to Germany, China or elsewhere.

Still, the industry remains on edge with both Britain and Europe’s carmakers calling for a delay in the implementation of post-Brexit “rules of origin”, under which 45% of the value of an EV being sold in the European Union must come from Britain or the EU from 2024 to avoid tariffs.

“The [auto] industry is screaming at the EU,” Badenoch said in Oxford, arguing that tariffs on EU and UK-made cars would only help Chinese manufacturers and that more time was needed to build local capacity.

($1 = 0.8023 pounds)

(Reporting by Alistair Smout, Nick Carey and Victoria Waldersee; Editing by Friederike Heine and David Holmes)