BMW pivots on plans for MINI EV production in England as the company prepares to adjust its plans for production and face possible tariff-related challenges.
BMW confirms it will be delaying plans to produce Mini EVs at its Oxford Assembly plant in England.
Electrification has rapidly become a key cog in the long-term sales plans of many automakers with some of them even announcing plans to embrace an all-electric lineup. However, decreasing demand for EVs and changing market conditions are forcing companies to rethink their approach in this arena with many of them making adjustments in the face of renewed tariff threats from President Trump.
One of these firms is the BMW Group which confirmed its shifting production plans for Mini EVs as changing conditions force it to not only delay the idea of building Mini EVs in its Oxford assembly plant but also walk away from a massive grant that was given to it by the British government.
BMW focuses on protection from tariffs with pivot for Mini production
The move comes as BMW Group is preparing to tackle changing market conditions and potentially stronger tariffs from the United States.
BMW Group made news a short while back when it confirmed it would enact a plan to produce MINI EVs at its plant in Oxford with the first wave of these EVs expected to leave the plant by 2026. However, renewed threats of tariffs from the Trump administration are forcing BMW Group to make adjustments which the company confirmed in a recent interview with Reuters. “Given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford,” the company said in a statement.
The company later offered more detail in another statement saying “Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which are sought after in the UK and around the world,” BMW said. “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.
This shift is not a surprise with sales of EVs beginning to lose steam in recent months with demand not being as strong as BMW had initially hoped. In addition to this growing problem, the company is also watching the moves of U.S. President Donald Trump with Trump recently threatening Europe with beefed-up tariffs. If these tariffs come to fruition, it would make it harder for BMW to make a profit and would erode some of the cost advantage it was hoping to achieve by having EV production in Oxford.
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BMW walking away from grant
The delay in production also means BMW will be wlaking away from a massive grant that was given to it by the British government.
In addition to delaying the production of these EVs, BMW Group also confirmed it’s walking away from a £60 million ($76 Million) grant that was given to it by the British government to help move these production plans along. “We have informed the UK government of our decision to review the timeline for reintroducing battery-electric production in Oxford. As part of this discussion, we agreed not to take the previously announced grant, but we remain in close dialogue about our future plans.”
BMW’s pivot away from this timeline is part of a broader trend as more automakers are forced to make adjustments to keep up with the volatility of the current vehicle market. Volkswagen and Mercedes-Benz have also confirmed they will be making adjustments to production and product timelines as they also prepare to face the potential of tightened tariffs and slumping EV sales with Benz’s EV sales sliding by a quarter last year. Meanwhile, demand for VW’s EV fleet has been sluggish too and it’s gotten so bad that some dealerships are already applying discounts to the recently launched ID.Buzz to get them off of their lots.
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