Mini's BEV Production in Doubt as BMW Reviews SpendingMini's BEV Production in Doubt as BMW Reviews Spending

The future of battery-electric Mini production in the U.K. hangs in the balance as BMW announces a pause in its plan for its Oxford plant.

BMW had been on a path to invest more than $750 million into the Mini factory some 50 miles (80 km) west of London to start production of its BEV model by 2026.

Now the automaker says it is reviewing the plans, citing current trading uncertainties facing the auto industry, reports BBC News.

A perfect storm of challenges is hitting the European industry with consumer demand for BEVs waning, fierce competition from cheaper Chinese imports and the most recent threat of additional tariffs on vehicles entering the U.S. market that could amount to an extra 25% on European products.

 U.K. automakers also argue that the number of electric vehicles they are expected to sell under the government’s zero-emission-vehicle mandate (ZEV) in this and coming years is too high. Last autumn, Stellantis cited the mandate as one of the reasons it decided to close its van factory in Luton.

The government responded by running a fast-track consultation with domestic automakers on changes to the ZEV mandate but no definitive decisions have yet been published.

In a company statement, Mini says construction in Oxford was underway “to make the plant future-ready” but it now tells the U.K. government it is currently reviewing the timeline for the work, which may have to be delayed.

It adds: “Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which are sought-after in the U.K. and around the world. However, given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford."