BMW will invest £600 million in an Oxford car factory so it can build a new generation of electric Mini models.
The announcement could safeguard the future of the facility in Cowley, and that of another production plant in Swindon, according to reports. Around 4,000 people work across both sites.
Chancellor Jeremy Hunt said the investment was “a huge vote of confidence in this country as a global leader in electric vehicles”.
“The automotive sector is one that is very critical to the UK economy and it is facing headwinds, so ensuring we’re able to sustain it with continual investment in the industry is fantastic.”
Two new electric Mini models – the Mini Cooper and Aceman crossover SUV – will be built in Cowley, where BMW will spend £600 million updating production lines, extending its body shop and creating a new area to install batteries.
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The investment also includes backing from the government’s Automotive Transformation Fund, which offers grants for businesses supporting “electrified automotive supply”.
BMW’s electric version of its Countryman model will be built in Germany. The first electric Mini was launched at the Cowley plant in 2019.
The move is significant as last year BMW said it would move the production of most of its electric cars to China, in partnership with GWM Group.
It follows announcements by Stellantis that it would invest £100 million in Vauxhall’s Ellesmere Port plant, securing 1,000 jobs, and investment by Nissan in the expansion of its Sunderland plant for electric vehicle production.
However, one of the challenges in boosting electric car production investment is building skills in this area ahead of a ban on the sale of new petrol and diesel-powered cars from 2030.
Research estimates that electric vehicles will make up around 80% of new car sales and 70% of new van sales by 2030, but the infrastructure lags behind, according to training and learning specialist City & Guilds.
It announced this weekend that it will partner with a number of industry employers such as Shell to develop a new portfolio of electric vehicle charging installation courses and qualifications.
Andy Moss, chief customer officer at City & Guilds, said it was important to celebrate the progress towards “a cleaner, greener economy” while recognising how this would create a dramatic shift in skills and labour markets.
“Nowhere is that shift more apparent right now than in the area of EV charging, with an additional 250,000 publicly installed chargers needed in the UK as our transport infrastructure looks to keep pace with demand,” he said.
“We’re committed to playing our part in preparing a highly skilled EV charging workforce for the net zero transition, by helping to fill workforce skills gaps, driving up training and safety standards, and ensuring consistent quality assurance and compliance across the sector.”
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Prime minister Rishi Sunak said the BMW investment was “another shining example of how the UK is the best place to build cars of the future”.
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