Plans to build electric Minis in Oxford in limbo

Mini remains “emotionally attached” to its Oxford factory, according to new boss Jean-Philippe Parain, but says plans to start building electric cars there in the future remain in limbo, and could rest on the outcomes of trade negotiations between the UK and European Union. The long-running plant is currently used to produce the petrol-powered hatch, but in recent years was upgraded so that the electric version could be built there. However, plans to start building the EV in the UK were postponed indefinitely due to the slowing growth of electric vehicle sales. The electric hatch is currently built in China, where the EV-only Aceman crossover is also produced. Meanwhile, the petrol and electric Countryman is built alongside the closely related BMW X2 in Leipzig, Germany. The European Union’s ‘rules of origin’ requirements stipulate that a certain percentage of a car must be manufactured in Europe to qualify for to be exempt from import tariffs, and to qualify for benefits including extra CO2 reduction credits and inclusion on big state procurement lists. The UK government is currently in talks with EU officials about whether EVs built in Britain would meet those criteria, which would allow made-in-Oxford electric Minis to be sold on the continent tariff-free. Speaking to Autocar at the Beijing motor show, Parain said: “Oxford is the core of the brand, it’s the home of the brand. We have a great, committed team there and we are really very emotionally attached to Oxford. We are in discussions with the UK government. We are working on the next-generation [of cars that will be built there] and of course it will be partly electric or fully electric. “It’s part of a big discussion. We have our production network that is very wide, and we try to play with flexibility, but we are well aware of what Oxford means. We had to postpone a decision, but when you are designing the future of Mini then of course at some point the whole would turn electric. But it’s a bit different now, so you can understand plans need to be looked at twice.” Asked what the key factors were, Parain said that whether the UK was included in the rules of origin deal was “very important”. He added: “That’s not a Mini or BMW Group topic: it’s a macro-economic topic. We are making the UK government very well aware or what’s at stake. You know about super credits and all this, and if the UK is not a country of origin for Europe that’s a very important topic for us. So we are really having very active discussions with the government and the ACEA [the European car industry association].” Parain said that he was pleased with the share of Mini sales that were electrified, noting they almost doubled last year and we are on course to grow in a declining market this year. The made-in-China electric hatch and Aceman don’t meet the criteria to be eligible for the UK’s electric car grant, although the Countryman is. Parain said it was “an excellent thing” that the Countryman received the grant, and said it was “unfortunate” the rest of the range didn’t. He added: “We would like it because we believe it would open electrification to a wider audience, and it's the Mini brand. If we are successful with electric cars that are produced here today in the UK, it could also help the British icon Mini brand overall.”

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Plans to build electric Minis in Oxford in limbo

'Rules of origin' requirements in European Union leave EV future hanging in the balance

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Plans to build electric Minis in Oxford in limbo

'Rules of origin' requirements in European Union leave EV future hanging in the balance

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