BMW delays £600m electric car deal over ‘uncertainties’ in industry

BMW has delayed a £600 million electric car investment due to “uncertainties” in the automotive industry.

The manufacturer said it will review the reintroduction of electric vehicles at its Mini plant in Cowley, Oxford, and will not accept a related £60m grant from government, but confirmed they remained in “close dialogue”.

BMW announced it would invest heavily into preparing the Oxford factory for electric cars, and production of two new electric Mini models was due to start in 2026. 

A statement from Mini owner BMW said: “Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which 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.”

It said construction “well under way to make the plant future-ready”, including a project to build a “state-of-the-art logistics facility”.

The targets for government’s zero emission vehicle (ZEV) mandate, which came into effect on 3 January 2024, has been criticised by some car manufacturers as being too high. Stellantis cited the mandate in the closure of its van facility in Luton.

The mandate requires electric cars to make up 28 percent of sales in 2025, with certain exceptions, and carmakers could face fines of up to £15,000 for each vehicle if they miss the target. A complete ban on new petrol and diesel engines is set for 2035, while 80% of vehicles should be battery-electric by 2030. 

The Department for Transport said was investing £2.3 billion to support the industry and consumers in the move towards electric.

It said it is consulting on “reinstating the 2030 electric vehicle deadline while also protecting jobs”, which is “supported by a majority of manufacturers who have been working towards this date and are on track to meet their ZEV mandate targets”.