BMW has confirmed it’s delaying the reintroduction of electrical car manufacturing at its Oxford Mini plant.
The car producer stated “a number of uncertainties going through the automotive trade” had led to its choice choice to pause work on the £600m improve of its plant in Cowley.
It stated it had determined to not settle for a associated £60m grant from the federal government however remained in “shut dialogue”.
The UK automotive trade has been in a long-running debate with the federal government over its targets for electrical car manufacturing.
Automobile makers have argued that the variety of electrical autos they’re anticipated to promote on this and coming years is just too excessive.
Earlier this yr, the federal government ran a fast-track session on modifications to this coverage, often called the zero emission car (ZEV) mandate.
Final November, Stellantis cited the mandate as one of many causes it determined to shut its van manufacturing facility in Luton.
An announcement from Mini proprietor BMW stated: “Plant Oxford is on the coronary heart of Mini manufacturing, manufacturing and exporting a spread of fashions, that are wanted within the UK and all over the world.
“Nevertheless, given the a number of uncertainties going through the automotive trade, the BMW Group is presently reviewing the timing for reintroducing battery-electric Mini manufacturing in Oxford.”
It stated a lot of the funding was progressing, with development “properly below option to make the plant future-ready”, together with a venture to construct new “state-of-the-art logistics facility”.
The assertion added: “We now have knowledgeable the UK authorities of our choice to evaluate the timeline for reintroducing battery-electric manufacturing in Oxford.
“As a part of this dialogue, we agreed to not take the beforehand introduced grant, however we stay in shut dialogue about our future plans.”
In 2023, BMW introduced plans to speculate lots of of thousands and thousands of kilos to arrange the Mini manufacturing facility in Oxford to construct a brand new era of electrical vehicles.
Manufacturing of two new electrical Mini fashions had been because of start on the plant in 2026.
The Division for Transport (DfT) stated it recognised the challenges automotive producers have been going through and was listening to issues.
It stated it was consulting on “reinstating the 2030 electrical car deadline whereas additionally defending jobs”, a choice it stated was “supported by a majority of producers who’ve been working in the direction of this date and are on observe to fulfill their ZEV mandate targets”.
The DfT stated it was investing greater than £2.3bn to assist trade and shoppers to make the change to electrical.