German carmaker BMW Group has paused a £600 million investment in its Cowley factory. The project was expected to create 4,000 new jobs and expand the plant’s production capacity for electric MINIs. The factory still remains the largest industrial employer in Oxfordshire.
BMW said that a reason for this is the “multiple uncertainties facing the automotive industry” as the UK is seeing weaker demand for electric vehicles at a time of rising consumer costs. The site is still earmarked to only produce electric cars by the year 2030, and for now, the production of internal combustion engines will continue. BMW had previously received funding from the UK government to help enhance its electric vehicle production but now will no longer be able to accept a previously announced UK government grant for the project. For now, electric MINIs will continue to be produced in China.
Automobile manufacturers have precise quotas on the amount of non-electric cars they can produce. The UK government plans to prohibit the sale of petrol and diesel cars by 2030. The electric quota increased this year by 6% to hit 28% of total production, with companies fined for non-adherence.
Business and Trade Minister Sarah Jones also reiterated in the House of Commons that the investment plans had been “delayed, not cancelled”.
A BMW spokesperson told Cherwell: “Plant Oxford is at the heart of MINI production, manufacturing and exporting a range of models sought after in the UK and around the world,” adding that the company is only “reviewing the timing” of the investment.
“Much of the investment is progressing with construction well underway to make the plant future-ready.” This includes a “state-of-the-art logistics facility.”
In response to BMW’s decision, a spokesperson for the Department for Transport said: “We recognise the global challenges car manufacturers face and have listened to their concerns by consulting on reinstating the 2030 EV deadline whilst also protecting jobs – a decision supported by a majority of manufacturers who have been working towards this date, and are on track to meet their ZEV mandate targets.
“We’re investing over £2.3 billion to support industry and consumers make the switch, tapping into a multi-billion-pound industry that will create high paid jobs for decades to come, make the UK a clean energy superpower and help deliver our Plan for Change.”
