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Electric Mini to be built in Oxford | Electric Mini to be built in Oxford |
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A fully electric version of the Mini will be built at the Cowley plant near Oxford, BMW has confirmed. | A fully electric version of the Mini will be built at the Cowley plant near Oxford, BMW has confirmed. |
The carmaker said the model would go into production in 2019, with Oxford the main "production location" for the Mini three-door model. | |
However, the electric motor will be built in Germany before being shipped to Cowley for assembly. | However, the electric motor will be built in Germany before being shipped to Cowley for assembly. |
BMW said it had "neither sought nor received" any reassurances from the UK on post-Brexit trading arrangements. | |
Last year, the government faced questions about the "support and assurances" given to Nissan before the company announced that new versions of its Qashqai and X-Trail would be made in the UK. | |
And there have been reports that Toyota agreed to invest in the UK after receiving a letter reassuring the Japanese carmaker over post-Brexit arrangements. | |
'Vote of confidence' | |
About 360,000 Minis are made each year, with more than 60% of them built at Oxford. But BMW has built up an alternative manufacturing base in the Netherlands amid concerns about Britain's suitability as an export hub after Brexit. | |
UK Business Secretary Greg Clark hailed BMW's announcement as a "vote of confidence" in government plans to make Britain "the go-to place in the world for the next generation of vehicles". On Monday, he set out plans to invest in development of battery technology in the UK. | UK Business Secretary Greg Clark hailed BMW's announcement as a "vote of confidence" in government plans to make Britain "the go-to place in the world for the next generation of vehicles". On Monday, he set out plans to invest in development of battery technology in the UK. |
BMW said the move was part of a plan for electrified vehicles to account for between 15-25% of its sales by 2025. | BMW said the move was part of a plan for electrified vehicles to account for between 15-25% of its sales by 2025. |
The electric Mini will be based on the company's 3-door hatchback model. However, BMW has yet to release pictures of a prototype vehicle. | |
BMW employs about 18,000 staff in the UK, including the Mini plant at Cowley, the Rolls-Royce factory in Sussex and at other sites in Birmingham and Swindon. | |
Analysis: Theo Leggett, business correspondent | |
BMW says the economic case for building the electric mini in Oxford is compelling, and it's easy to see why. | |
This is not a brand new car, redesigned from the ground up. It's a Mini, a 3-door hatchback, which will in many ways be identical to the cars already being built at the Cowley plant. | |
The electric bit - the drivetrain, which includes the motor, gearbox and battery pack - will be assembled in Germany, and fixed to the rest of the car in the factory. | |
So it makes sense to build the new model at the same factory as the majority of existing Mini production. There is no need for a new factory or production line, meaning the size of the investment will be relatively small by auto-industry standards - in "the tens of millions", BMW says. | |
There is a potential spanner in the works - the new car is due to go into production in 2019, months after the UK leaves the EU. | |
With drivetrains being imported into the UK and many completed cars exported back to Europe, there's a risk costs could rise sharply if tariffs are introduced on cross-channel trade. | |
But the company insists it can only make decisions based on the current economic realities. There has been no "special deal" done with the British government, it says - and nor has it asked for one. |