The BMW Group has announced an additional GBP500m investment in its UK production network over the next three years and confirmed that the UK will be a production location for its next generation Mini models.
The announcement by BMW comes hot on the heels of Nissan’s announcement confirming that it will invest to design and make the next Qashqai in the UK.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
BMW says this takes the company’s investment across all its UK operations to more than GBP1.5 billion since 2000.
“We have started preparing our UK plants for production of the next generation Mini and this investment underlines that the UK will remain the heart of Mini production,” said Norbert Reithofer, Chairman of the Board of Management of BMW AG, during a visit to London.
“The Mini brand has made a significant contribution to BMW Group’s success in markets around the world and we anticipate that this will grow further in the future.”
Most of the new investment will be used to create new production facilities and equipment at Mini Plant Oxford. BMW said it will help to safeguard over 5,000 jobs in the Mini vehicle assembly plant in Oxford, the pressings plant in Swindon and the company’s engine plant at Hams Hall near Birmingham.
UK Prime Minister David Cameron said: “I welcome this major investment by BMW Group in UK manufacturing. The production and export of iconic British cars like the Mini is making a real contribution to the rebalancing of the economy that this government is determined to achieve.
“It’s a tremendous vote of confidence in the skills and capabilities of the company’s British workforce and in the future of UK manufacturing.
“The Mini plant in Oxford has been one of our great manufacturing success stories, they should be hugely proud of their achievements. They have shown once again that the UK is a major player in the global automotive industry.”
Business Secretary Vince Cable said: “Today’s announcement by BMW is a real tribute to the success of British automotive manufacturing.
“The firm’s workforce in Oxford is now set to repeat the international success of the current Mini in producing the next generation model over the coming years.
“The competitiveness of automotive manufacturing in this country is shown by the commitment of the biggest global firms to make serious investments in long-term production here and as a government we are determined to make sure this success story remains a big part of the future economic growth we must secure.”
“Oxford has been the heart of Mini for the last 10 years and we are proud of what has been achieved here,” said Jürgen Hedrich, head of Plant Oxford.
“Naturally we are delighted to confirm that the next generation Mini will be built here too and look forward to the continued worldwide success of these great cars.”
The BMW Hams Hall engine plant, close to Birmingham, set a new annual production record in 2010 with 385,051 engines, representing 16% of total UK engine production. Four-cylinder petrol engines are manufactured at Hams Hall for both Mini and BMW models.
