Dive Brief:
- BMW Group is investing over $750 million in two factories in the U.K., located in Oxford and Swindon, to prepare them to produce electric vehicles for the Mini brand, BMW Group said Monday.
- Starting in 2026, the Oxford factory will manufacture two new Mini EVs, the Cooper 3-door and Aceman crossover, in addition to internal combustion engine models. It will produce EVs exclusively by 2030.
- BMW plans to transform Mini into an all-electric brand by 2030.
Dive Insight:
After The Times reported last year that Mini would shift EV production to China, BMW's investment marks an apparent turnabout. The Oxford plant will phase out ICE vehicle production by 2030.
“With this new investment we will develop the Oxford plant for production of the new generation of electric Minis and set the path for purely electric car manufacturing in the future,” said Milan Nedeljković, BMW board of management member responsible for production, in a statement.
Mini will build about 200,000 EV and ICE vehicles in Oxford each year. The Oxford plant has produced the Mini Electric since 2019. It also makes ICE versions of the Mini 3-door, 5-door and Clubman.
Beginning in 2024, the Oxford plant will produce next-generation Mini models equipped with ICE engines, including an all-new convertible model. By 2026, the factory will make the fully electric Cooper 3-door and Aceman on the same production line. The Oxford plant will phase out ICE vehicle production and only produce EVs by 2030, BMW said.
BMW is also investing in its stamping plant in Swindon, which makes over 350 different pressed parts and subassemblies for Mini vehicles. After the Swindon plant finishes building the bodies, Mini transports them to the nearby Oxford plant for final assembly.
Reuters reported Monday that BMW received about $93.8 million in government subsidies to invest in automotive manufacturing in the U.K.
“We are proud to be able to support BMW Group’s investment, which will secure high-quality jobs, strengthen our supply chains and boost Britain’s economic growth,” British Business and Trade Secretary Kemi Badenoch said in a statement.
BMW will also assemble the next generation, all-electric Mini Cooper 3-door and Mini Aceman in China, with exports starting in early 2024. Under a joint venture with China's Great Wall Motor, a new manufacturing plant in Zhangjiagang, Jiangsu Province, China, will build the two EVs. According to Bloomberg, Mini will export EVs produced in China to other markets, including Europe.
BMW will begin manufacturing the Mini Countryman at its plant in Leipzig, Germany, later this year, making it the first Mini model built in Germany.
