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Wednesday 08 March 2023 4:02 pm  |  Updated:  Thursday 09 March 2023 9:21 am

BMW invests £500m in Oxford Mini plant with car maker expected to receive £75m UK taxpayer grant

By: Jack Mendel

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Hundreds of jobs could be created from a £500m investment in Oxford by BMW, as it looks build electric models of its Mini in Britain.

The German car-maker is reportedly preparing to unveil a major injection of cash – including £75m of government-approved funding – as first reported by Sky News’ Mark Kleinman. 

The investment of around £500m includes funding from the government’s Automotive Transformation Fund, backed by Jeremy Hunt, and seeks to jump-start Britain’s car production industry.

This comes after car production in Britain fell slightly in January as thousands continued the shift towards electric vehicles which experienced a near 50 per cent increase. This comes after UK car production fell to its lowest level since 1956 in 2021.

Sky News reported that it was not clear how the proposed investment would be used or how many jobs would be created at the Oxford site. 

In a statement to City A.M., BMW UK said it would not comment on ‘media speculation’, but that with “its high degree of flexibility, competitiveness and expertise, the Oxford plant plays an important role in the BMW Group’s production network.”

“For the next Mini generation, Oxford will produce the majority of MINI models, the MINI Cooper three-door and five-door models, as well as the MINI Convertible — one of our most important vehicles and a worldwide bestseller. 

“Any future production plans will be announced in due course, we do not comment on media speculation.”

BMW said that “new all-electric MINI models — a hatchback and a small crossover — are produced in China as part of our partnership with Great Wall” but that “starting this year, the MINI Countryman will be built in Leipzig.”

When approached for comment the department for Business and Trade (DBAT) said: “While we do not comment on speculation or the commercial affairs of private companies, the UK remains Europe’s most attractive destination for investment and we are determined to ensure it remains one of the best locations in the world for automotive manufacturing, too.”

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