BMW Group is to invest £600m (€700.2m) to transform its Oxford plant for production of the electric Mini from 2026.

The plant will be revamped to build the three-door Mini Cooper alongside the Mini Aceman compact crossover

The plant will be revamped to build the three-door Mini Cooper alongside the Mini Aceman compact crossover.

The move will safeguard the future of the Cowley facility and secure around 4,000 jobs at both Oxford and the body pressing plant at Swindon. There had been concerns for the site after the group announced earlier this year that the all-electric Mini Countryman SUV will be built in Germany while the carmaker had also said last autumn that electric production would move to China with joint-venture partner Great Wall Motor.

Markus Grüneisl, CEO of Plants Oxford and Swindon, said: “I am proud to say that our Oxford and Swindon plants will play a central role in the BMW Group’s transition to electromobility. We are determined to continue the historic success story of our plants, producing the most-loved British car brand.”

The funding is also being supported by investment from the UK government; exact details haven’t been revealed but it’s reported that the carmaker is getting £75m (€87.5m)from the Automotive Transformation Fund.

Prime Minister Rishi Sunak said: “BMW Group’s investment is another shining example of how the UK is the best place to build cars of the future. By backing our car manufacturing industry, we are securing thousands of jobs and growing our economy right across the country.”

The SMMT said the “landmark announcement” was yet another vote of confidence in UK automotive manufacturing.

Mike Hawes, chief executive, continued: “Not only does it secure the long-term future of the home of one of the world’s most iconic brands, it also demonstrates once again our capabilities in electric vehicle production.”

The Mini Plant Oxford currently produces the three- and five-door models as well as the Mini Clubman and the Mini Electric. From 2024 the plant will start producing the next generation three- and five-door models in petrol-engined form, as well as the new Mini Convertible, before the arrival of the electric Cooper three-door and Aceman in 2026.

Mini said Cowley would have a capacity of around 200,000 cars per year in the medium term, with ICE and battery electric vehicles (BEVs) initially being built on the same production line.

From 2030, production at the Oxford plant will be exclusively electric.

Production of the new models will also begin next year as planned at Great Wall’s factory in Zhangjiagang as part of the joint venture with Great Wall Motor – initially for global markets before focusing on local production when Oxford comes onboard.

Business and Trade Secretary Kemi Badenoch, who was at the Cowley plant for the announcement, hailed the decision as “a big vote of confidence in the UK economy and the work of this Government to ensure the continued strength of our world-leading automotive sector”.

“We are proud to be able to support BMW Group’s investment, which will secure high-quality jobs, strengthen our supply chains, and boost Britain’s economic growth,” she added.

The Oxford plant celebrated its 110th anniversary this year and has been producing the current Mini Electric since 2019, alongside the conventional petrol-engined models.

Stefanie Wurst, head of the Mini brand, said: “Mini has always been aware of its history – Oxford is and remains the heart of the brand. I am delighted that the two new, fully electric Mini models – the Mini Cooper and Mini Aceman – are also being produced in Oxford, thereby confirming our path to a fully electric future.”

The new funding will be used to develop the existing production lines further, including extending the current body shop and adding a new area for battery installation. Additional logistics facilities will be built on both the Oxford and Swindon sites.

The investment is the latest win for the UK automotive sector after Vauxhall parent Stellantis reopened its Ellesmere Port plant last week as the UK’s first manufacturing plant dedicated solely to battery electric vehicles (BEVs) – and the first BEV-only plant globally for the group.

Jaguar Land Rover owner Tata announced in July that it’s building an electric battery gigafactory in Somerset, backed by a £4bn (€4.7bn) investment. It will produce batteries for JLR brands including Range Rover, Defender, Discovery and Jaguar, as well as other manufacturers in the UK and Europe.

The SMMT’s Mike Hawes added: “British automotive manufacturing has clear advantages – a skilled, highly productive workforce, cutting edge plants, a diverse vibrant supply chain and world-class R&D – all of which we must continue to promote in the face of fierce global competition. Investments such as this improve productivity and help deliver jobs, growth and economic benefits for the country.”