BMW Bets UK Will Avoid 'Rules of Origin' Trade Penalty

BMW is betting on Germany’s support of the UK government’s attempt to gain low tariff access to European markets will be successful as it commits to $750M investment in Mini.

The automaker has pledged the investment to turn the Mini brand it owns into an electric only manufacturer by 2030, Reuters reports. Naturally, Germany’s very vocal support for the UK to not be penalized by the EU’s “rules of origin” customs legislation, despite now being a third country post-Brexit, is largely down to the country’s automakers being so invested as owners of British brand factories, including Rolls-Royce (BMW again) and Bentley (Volkswagen Group).

Both UK and some of Europe's carmakers are calling for a delay in the implementation of post-Brexit “rules of origin”, under which 45% of the value of an EV being sold in the European Union must come from Britain or the EU from 2024 to avoid tariffs.

From 2026, BMW will make two electric models at its Mini plant in Oxford, namely the Mini Cooper 3-door and the compact crossover Mini Aceman. The same two models will also be made in China and exports of those cars will begin in 2024.

BMW will also invest in its UK plant in Swindon which makes parts for Mini models. The company did not say what will happen to its engine plant in Hams Hall.

— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_  and Threads