BMW Investment Ensures the Continuity of Mini Factory Operations

11 Sep, 2023

BMW Investment Ensures the Continuity of Mini Factory Operations

BMW, the German automotive giant, is set to unveil an extensive investment plan worth hundreds of millions of pounds aimed at modernizing its Mini factory located near Oxford, enabling it to manufacture the next generation of electric vehicles. In 2026, production will commence for two new electric Mini models at the Cowley plant, which is expected to not only the future of this facility but also that of another factory in Swindon.

These two sites currently employ over 4,000 individuals. BMW is anticipated to announce a £600 million investment to upgrade the Cowley plant, enhance production lines, expand the body shop, and construct a new area dedicated to battery installation. Additionally, they plan to erect supplementary logistics facilities at both Cowley and the Swindon factory, which produces body panels for new vehicles. These strategic moves will enable the production of two next-generation electric models, the Mini Cooper and the larger Mini Aceman, alongside conventional vehicles at Cowley, while the third electric model, the Countryman, will be manufactured in Germany.

This substantial UK investment will be supported by funding from the government's Automotive Transformation Fund, estimated at £75 million. Prime Minister Rishi Sunak lauded BMW's investment as a testament to the UK being the optimal location for building future automobiles, while Business and Trade Secretary Kemi Badenoch highlighted its alignment with the government's automotive sector strategy.

With the Mini brand slated to transition to full electric by 2030, BMW's decision holds paramount importance for the continued viability of the two UK factories. In 2019, the Cowley plant saw the launch of the first electric Mini. However, last year, the company revealed its plans to shift most electric car production to China, where these new models were developed in collaboration with Great Wall Motor. BMW initially suggested that co-locating conventional and electric vehicle production in the same factory was inefficient. Nevertheless, this approach has evidently been revised.

Production of the new models is scheduled to commence next year at Great Wall's Zhangjiagang factory, with Cowley now anticipated to join in production in 2026. This investment follows a series of government-backed initiatives aimed at promoting the development of electric vehicles in the UK, in preparation for the ban on the sale of new petrol and diesel-powered vehicles set to take effect in 2035.

In July, Tata, the owner of Jaguar Land Rover, announced plans to establish a massive "gigafactory" for battery production in Somerset, a project expected to receive substantial taxpayer support. Stellantis recently initiated electric van production at its Ellesmere Port factory in Cheshire, while Nissan is expanding electric vehicle production at its Sunderland facility, with partner Envision AESC building a gigafactory nearby. Furthermore, Ford is making significant investments in its Halewood plant to prepare for electric motor production.