Car giant BMW is going to unveil its plans of investing hundreds of millions of pounds for the preparation of its mini factory which is to be built adjacent to Oxford for securing the upcoming generation of electric cars. The company is planning to build two new electronic mini models after the manufacturer made a deal with the UK government. The investment is considered to secure the future of a factory in Swindon, more than 4,000 people are reportedly employed there.
Moreover, the German company BMW will contribute 600 euro million to upgrade the Cowley plant production lines development, and body shop expansion also arranging a new battery installation area.
Prime Minister of the UK Rishi Sunak stated about the investment of BMW, ‘another shining example of how the UK is the best place to build cars of the future’. Also said that the government of the country was trying to secure jobs and enrich its economy, ‘by backing our car manufacturing industry’.
Kemi Badenoch, Business and Trade secretary is expected to visit a mini plant in Oxford to announce the investment, expressed that the news was ‘exciting’ and she thought that the investment would make sure the sector ‘continues to be buoyant’.
Further, she added, ‘All I can tell you is what we put in the automotive transformation fund, and that’s money that goes to many different companies across the sector not just one. We put in £350m in 2021. We do have to make some investment ourselves as a government, that is standard, and we’re competing against countries from all around the world as well as the EU and we are winning. We’re not doing anything out of the ordinary.’
Both Rishi Sunak and Kemi Badenoch appreciated the decision of BMW as it strengthened the automotive sector. Other manufacturers like Jaguar Land Rover, Nissan, Stellantis, and Ford have also made their investments in the UK’s production of electronic vehicles. The government has been trying to captivate car makers who can invest to manufacture their electric models in the country.
Birmingham Business School’s professor of business economics David Bailey shares his beliefs, ‘The UK needs to shift towards EVs quickly. The 2035 deadline is approaching,’ continues adding,
‘It has been lagging behind other countries, not just in terms of battery production, but also in terms of EVs… but with the recent announcements, things are going in the right direction.’
Jeremy Hunt, UK chancellor commented on the investment of BMW, saying, ‘huge vote of confidence in this country as a global leader in electric vehicles’.
The Indian Group Tata, owner of Jaguar Land Rover said that the ‘gigafactory’ to manufacture batteries in Somerset, deserved to benefit from hundreds of millions of pounds in support of taxpayers. Stellantis has started to begin manufacturing electronic vans recently, In the meantime, Ford has made its investment in the Halewood plant to prepare electric motors.
Britishvolt which had planned to build a factory of battery near Blyth, subsided in January and its future is still unsure. The SMMT shared that the carmakers were making an effort to recover from the difficulties they faced in recent times which included a shortage of global chips.
Mini is going to be electric completely by the year 2020. But from where the batteries of the cars at Cowley will appear is yet to be discovered, and could generate a complicated issue to resolve.
