The business and trade minister has emphasised that BMW’s decision to delay the production of two electric Mini models at its plant near Oxford was “commercial”.
Sarah Jones said the company remained committed to its investment in the UK.
Responding to an urgent question in the Commons from the Conservative shadow minister, Greg Smith, she emphasised that the plan had been delayed, not cancelled.
She added that contact with BMW management was ongoing.
BMW currently manufacturers electric Minis at a facility in China.
In September 2023, it announced plans to manufacturer them at its factory in Cowley, as well.
The plan required a £600m investment.
Over the weekend, the company confirmed that work on upgrading the factory had been suspended due to “multiple uncertainties facing the automotive industry”.
It said it was “reviewing the timing for reintroducing battery-electric production in Oxford.”
The BBC understands that a number of issues have fed into BMW’s decision.
But the slower than expected pickup of electric car sales in a number of key markets is believed to be a key factor, meaning extra production is not currently needed.
Mr Smith said BMW’s decision was the “disastrous consequences of Labour’s rigid approach to Net Zero, BMW hitting the brakes on a £600m investment into Plant Oxford”.
