BMW to pump £600million into Britain in major boost for UK manufacturing
MINI Electric is unveiled at the MINI factory in Cowley, Oxfordshire
PA
BMW is preparing to pump £600million into Britain in a major boost for UK manufacturing.
The decision looks set to bolster Mini's electric car production at its factory near Oxford.
Production of two new electric Mini models is due to begin at the plant in Cowley in 2026.
BMW's decision to redirect cash from China to Britain is also expected to bolster another factory in Swindon.
One of the entrances to the BMW Group Plant in Cowley
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More than 4,000 people are employed across the two sites.
The Government's Automotive Transformation Fund is understood to have guaranteed £75million worth of funding.
Prime Minister Rishi Sunak, who is backing the ban on producing new petrol and diesel motors after 2030, argued BMW's investment was "another shining example of how the UK is the best place to build cars of the future".
Business Secretary Kemi Badenoch also claimed it showed "the Government's plan for the automotive sector is working".
The MINI Electric is unveiled at the MINI factory in Cowley, Oxfordshire
PA
Chancellor Jeremy Hunt added the investment was “a huge vote of confidence in this country as a global leader in electric vehicles”.
BMW's anticipated decision comes despite fears about Brexit creating an exodus of car companies and post-EU tariffs hampering the UK's electric vehicle industry.
Germany has even mounted pressure on Brussels to delay tariffs on electric vehicle sales between the UK and the EU.
BMW's pivot to Brexit Britain has come at a cost for Beijing as the German car giant was previously poised to pump millions into production sites in China.
German-based analyst Matthias Schmidt argued car manufacturers are exploiting a weak hand held by Sunak's Government.
Prime Minister Rishi Sunak (left) views the build of an electric racing car and talks with the student racing team during a visit to a science event at the International Manufacturing Centre at the at University of Warwick
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He said: "I would see this as BMW unashamedly playing the subsidy card, which many have done before them and many will follow, trying to squeeze out some fiscal buoyancy aids from the UK Government, which holds terrible cards."
However, Schmidt addressing questions about Mini's British roots, the economist added: "Being close to the brand heritage is likely to make sense even if that knocks some margins off the finished product."
Despite losing its Swindon Honda plant in 2021, the UK car manufacturing sector was bolstered by BMW's latest announcement and Vauxhall maker Stellantis' decision to start producing electric vehicles last week at its Ellesmere Port plant.
Tata is poised to build a gigafactory in the UK supplying electric batteries at the cost of £4billion.
Nissan and AESC will also create an electric vehicles manufacturing hub in Sunderland.